The expiry of Serbia’s temporary fuel excise reduction could increase costs for transport operators, manufacturers, construction companies and agricultural businesses, as statutory duties are set to replace the lower rates.
The government reduced fuel excise duties by 25%, bringing the diesel rate down to 55.53 dinars per litre, compared with the statutory 74.04 dinars. For petrol, the reduced rate stands at 54 dinars, against the regular 72 dinars. The difference amounts to 18.51 dinars per litre for diesel and 18 dinars for petrol. The return to statutory rates could add around 20 dinars per litre, including the VAT effect.
Higher costs for transport and industry
For businesses with substantial fuel consumption, the increase could have a direct impact on operating expenses. A transport company using one million litres of diesel annually would face an additional cost of approximately 18.5 million dinars, or around €158,000, based on the difference between the reduced and statutory excise rates.
Higher fuel expenses could also affect freight contracts, financing requirements and manufacturers whose production and distribution costs depend heavily on diesel.
The impact would extend to construction and agriculture, where machinery, transport and other fuel-intensive activities make fuel prices an important operating-cost component. Preferential diesel for agricultural producers is priced at 184 dinars per litre.
Retail prices and supply considerations
Retail fuel prices remain subject to government controls, with maximum prices set at 236 dinars per litre for diesel and 207 dinars for petrol.
The situation also depends on domestic supply conditions and the operations of NIS and the Pančevo refinery. Any supply uncertainty could add pressure to the market alongside the higher excise burden.
For companies operating with narrow margins, the combined effect of fuel costs, transport expenses and supply risks could require adjustments to pricing, procurement and working-capital planning.
