Serbia relies on imports for about 80% of its crude oil needs, while domestic production and refining are handled exclusively by the Oil Industry of Serbia (NIS). In 2024, NIS produced roughly 0.801 million tons of crude oil (22.13% of total consumption) and imported 2.819 million tons (77.87%). Notably, for the second consecutive year, no crude oil was imported from Russia due to EU sanctions, prompting diversification toward sources like Azerbaijan, Iraq, Kazakhstan, Norway, Nigeria, Egypt and Libya.
Oil for domestic use is transported via the Adriatic Oil Pipeline (JANAF) from Croatia to the Pančevo refinery. The refinery, majority-owned by Gazprom Neft and Gazprom, remains crucial, supplying 75% of gasoline and 69% of diesel in the country. NIS has repeatedly requested U.S. waivers to continue imports under existing contracts, highlighting systemic risks to fuel security if operations were disrupted.
To mitigate price shocks, Serbia implemented the Regulation on Limiting Oil Derivative Prices in February 2022, with regular updates. Farmers benefit from preferential diesel pricing at 179 dinars/liter for up to 100 liters per hectare, combined with excise duty refunds. However, this system has created market distortions, particularly in smaller towns where some gas stations have ceased operations.
Looking ahead, Serbia and Hungary plan to construct a new 113 km oil pipeline in Serbia (180 km in Hungary) with an annual capacity of 4–5 million tons, operational potentially by 2028. This project, developed with MOL and Transnafta, will diversify Serbia’s oil supply routes, reducing reliance on the Croatian transit corridor and enhancing overall energy security.
Tomislav Mićović of the UNKS emphasizes that such infrastructure projects are long-term investments that significantly reduce supply risks by providing alternative sources alongside existing supply chains.
