Serbia is considering a gradual reduction of its fuel tax relief measures as oil prices ease, President Aleksandar Vučić said. He added that the country may soon begin phasing down temporary fuel tax relief introduced during the energy crisis. The move would involve changes to excise tax treatment for fuel.
Potential cut to excise tax reduction
Vučić said the government is looking at cutting the current excise tax reduction by half. That would lower the fiscal burden from a 20% exemption to around 10% of excise revenue foregone. The proposal is linked to current market conditions for crude oil.
Oil price conditions and timing for a final decision
The consideration comes as global energy prices have eased, with Brent crude trading at around $78 per barrel. Vučić said a final decision could be taken in the near future if oil prices remain at current levels. He also indicated that the policy direction could shift toward fiscal normalization.
Fuel station pricing and temporary measures
Vučić noted that changes in crude oil prices are not immediately reflected at fuel stations. Retailers typically wait for market trends to stabilize before adjusting retail fuel prices. The government originally introduced the fuel tax relief package during the energy crisis to mitigate the impact of elevated oil prices on consumers and businesses.
If favorable market conditions persist, authorities are expected to gradually phase out the temporary tax reductions. The process would eventually restore excise duties to their pre-crisis levels.
