In response to ongoing geopolitical tensions and fluctuations in global oil prices, Serbia is increasing domestic refining operations at Naftna Industrija Srbije (NIS) to maintain a stable fuel supply. The country’s energy authorities are working to mitigate the effects of international sanctions and ensure that the domestic market remains adequately supplied in the coming weeks.
Mining and Energy Minister Dubravka Đedovic recently met with NIS CEO Kirill Tyurdenev, where it was confirmed that the company has already ramped up crude processing volumes. Plans are in place for further output increases in April, aimed at securing sufficient supplies of petroleum products for local consumption.
The Serbian government is committed to providing an uninterrupted fuel supply, particularly for smaller fuel stations, and expects that both large and small customers will continue to receive deliveries from NIS without any disruptions. This commitment is crucial as the region navigates complex market dynamics.
An operational license from the US Office of Foreign Assets Control (OFAC) for NIS is valid until April 17, allowing the company to operate under current regulatory conditions. To bolster market stability, Serbia has also released 40,000 tons of diesel from its strategic reserves, supporting oil companies during this critical period.
The government has implemented a series of emergency measures designed to limit the impact of market disruptions. These include a ban on the export of diesel, gasoline, and crude oil, alongside a 20% reduction in excise duties. Additionally, state diesel stocks are being distributed to fuel suppliers to further stabilize the market.
Minister Đedovic noted that these initiatives have successfully mitigated shortages and prevented excessive price increases. Currently, all fuel produced by NIS is directed toward meeting domestic demand. However, she acknowledged a significant decline in imports of refined products due to rising oil prices and highlighted ongoing challenges stemming from conflicts in the Middle East and Ukraine, as well as persistent sanctions-related issues affecting NIS’s operations.
