Gas prices in Serbia keep on growing – World oil market and excise taxes dictates price-lists

The price of gasoline in Serbia has increased by around 8 dinars since the beginning of March, and the price of diesel fuel by more than 10 dinars per liter. The prices of petroleum product continued to grow throughout May, as it did in certain neighboring countries. For example, Croatian drivers were faced with new price-lists on May 31. This price increase is explained as a consequence of the recovery of the world oil market and the growth of the prices of raw oil in the global market, for three months consecutively. Another reason is the reduction in supplies due to limited production as a result of Canada fires and Nigeria unrest.

- Considering that around 80% of petroleum products used in Serbia are imported or produced by processing imported oil, price trends in the international market directly influence the fuel prices in Serbia – says Tomislav Micovic, Secretary General of the Association of Oil Companies of Serbia (AOCS), for eKapija.

Micovic says that, at the beginning of 2016, the price for the “brent” type of raw oil in Serbia was USD 37.22 per barrel. The prices continued to lower until 20 January, when the price was a record-setting USD 27.88 per barrel.

- That’s when the recovery of the prices of raw oil started, but the fuel prices at gas stations in Serbia continued to go down for about a month further, until the beginning of March. Beginning with the 20 January breakpoint, a barrel of raw oil became more expensive by USD 21.67, or 78%, whereas, following the 2 March breakpoint, the average price of a liter of petrol in Serbia increased by 8.33 dinars, or 6.75%, and of diesel fuel by 10.60 dinars, or 8.47$ - explains eKapija’s interviewee.

Tomislav Micovic says that the percent growth of the prices of fuel is far smaller than the percent frowth of the price of raw oil, which was true in the period when the trend was reverse, when the prices were going down. He also reminds that it should be kept in mind that over 58% of the average retail price in Serbia is made up of various taxes, which are barely influenced by the changes in raw oil prices.

- When the average retail prices in the region are compared, it becomes apparent that the prices are the lowest in the countries with the lowest excise taxes and VAT, like Bosnia and Herzegovina and Macedonia. The final retail price and with it the differences between fuel prices in certain countries are determined by the fiscal policy of each of these countries, which is confirmed by the fact that company prices are nearly equal in the entire region – concludes Micovic.

As the fuel prices in Serbia continue to grow, gas prices in public procurement procedures in Serbia have lowered by an average of 4.06% since June 1.

Udruženje naftnih kompanija Srbije Beograd

fuel rpices in Serbia

petrol

diesel fuel

price of oil

Tomislav Micovic

AOCS

brent oil

excise taxes

VAT

price of gas