The Serbian Government has enacted a revision of its temporary fuel tax relief measures, aimed at stabilizing the domestic fuel market in the face of escalating global crude oil prices and geopolitical instability, particularly in the Middle East. This adjustment reflects ongoing efforts to mitigate the impact of external pressures on local consumers and businesses.
In a recent decision, authorities reduced the excise tax relief on petroleum products from 25% to 20%. This change applies to key fuels, including leaded gasoline, unleaded gasoline, and diesel fuel, and is set to remain in place until 31 May.
This latest measure follows a series of interventions initiated on 13 March, when a 20% reduction in excise duties was first introduced due to significant fuel price hikes linked to the conflict involving Iran that escalated at the end of February. The government subsequently increased the relief to 25% on 10 April, only to partially retract this support with the current adjustment.
The rationale behind this policy shift is attributed to rising producer prices for petroleum products, which have been influenced by persistent increases in international crude oil prices. The government aims to balance fiscal responsibility with consumer protection amidst these fluctuations.
Despite some recent stabilization in global markets, domestic fuel prices in Serbia remain elevated compared to pre-crisis benchmarks. Since late February, diesel prices have surged by €0.20 per liter, while petrol prices have risen by €0.09 per liter, indicating that consumers continue to face challenges as market conditions evolve.
