Serbia has introduced a temporary 20% reduction in petroleum product excise duties as the government moves to limit the impact of higher international oil prices on consumers and businesses, while uncertainty continues over the future operating conditions of the country’s largest oil company, Naftna Industrija Srbije (NIS).
The excise reduction is in force from July 20 to July 26, 2026, with calculations cited by Serbian public broadcaster RTS indicating that the measure could reduce retail fuel prices by around nine dinars per litre after the inclusion of value-added tax.
The government measure is temporary and does not change Serbia’s long-term fuel taxation framework. It is intended to reduce the immediate impact of increased crude oil prices and higher production costs on transport operators, agricultural companies, logistics businesses and household expenses.
NIS Sanctions Issue Remains Key Energy Market Concern
While the excise cut provides short-term relief, developments surrounding NIS remain the main uncertainty for Serbia’s energy sector.
The current US authorisation allowing NIS to continue operations despite sanctions related to its Russian ownership was reported to remain valid until July 31, 2026. Serbian authorities have been engaged with Hungary’s MOL and other stakeholders regarding a possible ownership arrangement that would meet US sanctions requirements. Srbijagas Director Dušan Bajatović said he expected the operating authorisation to be extended again, although no final decision from US authorities had been announced as of July 20.
NIS plays a central role in Serbia’s energy system, including fuel supply, refining operations and wholesale distribution. Failure to secure another sanctions waiver or reach an acceptable ownership solution could affect crude oil imports, refinery activities and the availability of fuel on the domestic market.
Gas Prices and Storage Capacity
Bajatović also stated that household natural-gas prices would remain unchanged. However, commercial consumers could face price increases of up to 10%, depending partly on international oil price movements.
He added that the Banatski Dvor gas storage facility was approximately 93% full, while additional Serbian gas reserves were being stored in Hungary. For energy-intensive industries, the upcoming July 31 NIS deadline represents a more significant factor than the short-term fuel excise reduction. Although the tax measure may temporarily ease operating costs, companies continue to face uncertainty related to sanctions, supply arrangements and commercial gas pricing.
