Fuel consumption in Serbia has remained stable, and has increased in some cases, despite diesel and petrol prices reaching record retail levels. Diesel prices have risen to approximately RSD 234 per litre, or nearly €2.00, while petrol has reached around RSD 205 per litre, equivalent to approximately €1.75. The higher prices are increasing costs for households and businesses reliant on road transport.
Retail fuel sales remain resilient
Fuel retailers have reported no significant reduction in sales volumes. Demand for motor fuels remains relatively inflexible because consumers and companies have limited alternatives, particularly outside Serbia’s largest urban centres. Stable consumption continues to support fuel distributors and preserves part of the state’s tax base. However, government measures to limit retail price increases have included lower excise duties and other market interventions, reducing budget revenue generated per litre sold.
Higher fuel costs spread across industries
Elevated fuel prices are increasing operating costs across agriculture, logistics, construction, manufacturing and retail. Companies that cannot absorb the additional expenses may transfer at least part of the increase to customers, adding pressure to consumer prices.
Excise policy creates fiscal pressure
The government faces a trade-off between fuel taxation and budget revenue. Restoring full excise duties would increase public revenue but also raise prices at petrol stations, while maintaining reduced duties would place greater pressure on the budget deficit. The continued level of fuel demand means the immediate impact is being reflected less in falling sales and more in the broader effects of higher transport costs on household purchasing power, company margins and consumer prices.
