Danube water levels cut river fuel deliveries
Serbia has authorized oil companies to temporarily draw on their mandatory operational diesel stocks due to exceptionally low water levels on the Danube, which are restricting fuel imports. The Ministry of Mining and Energy said river deliveries have fallen sharply and cannot be fully covered by rail and road transport. Energy Minister Dubravka Đedović Handanović estimated that river transport is operating at only 30–40% of normal capacity.
The measure is designed to prevent shortages and limit upward pressure on retail prices while import logistics remain constrained. Companies are required to replenish the released volumes once transport conditions normalize.
Scope of the release and link to supply-security obligations
The decision does not involve Serbia’s strategic state-owned fuel reserves. Instead, it concerns operational stocks held by market participants as part of their mandatory supply-security obligations.
Pančevo refinery continues processing; authorization extension planned
The Pančevo refinery, operated by NIS, continues running at full capacity. The government plans to extend the refinery’s operating authorization beyond its current 31 July expiry date, allowing crude processing to continue without interruption.
Excise duty reduction and review of inventories and routes
Serbia has reduced excise duties on petroleum products by 20%. Government officials, NIS, and the Association of Oil Companies of Serbia have reviewed commercial inventories and alternative import routes to determine whether further intervention is needed.
The Danube remains a key logistics corridor for Serbia’s fuel market, providing a comparatively efficient route for transporting crude and petroleum products. Rail and road alternatives have higher costs and more limited short-term capacity.
Operational reserve release as a short-term bridge
Releasing operational reserves can help bridge a temporary disruption but does not address the underlying transport bottleneck. If low water persists, freight costs could rise, refinery feedstock planning could become more complex, and additional fiscal or inventory measures may be required to prevent wholesale-market pressure from reaching consumers.
