Serbia's Strategic Move: Excise Duty Cuts Amidst Regional Tensions
Serbia plans to reduce excise duties on crude oil by a total of 60% to stabilize the local market due to tensions from the Israeli-U.S. conflict with Iran. President Aleksandar Vucic emphasized the necessity despite potential revenue loss. Fuel price caps and export bans extend to sustain ample reserves.
In a bid to stabilize the local oil market amid heightened geopolitical tensions, Serbia will implement a total reduction of 60% in excise duties on crude oil, President Aleksandar Vucic announced.
This move follows last week's 20% cut, aimed at preventing fuel price hikes despite the potential loss in tax income. The government in Belgrade has maintained a price cap on diesel and gasoline since early 2022 and recently extended an export ban on crude oil and related products until April 2, ensuring fuel availability for citizens.
During talks with Russia's Economic Development Minister Maxim Reshetnikov, Vucic highlighted Serbia's reliance on Russian gas, which constitutes 90% of its consumption. With the gas deal nearing expiration, Serbia seeks long-term supply stability amidst increased delivery risks.
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