Energy expert: The price of oil in Serbia is formed by free estimate, not by the market

According to data from July 31, drivers in Serbia pay the most expensive diesel and gasoline compared to the other countries in the region, and energy expert Miodrag Kapor says that the price of oil derivatives in Serbia is unfortunately not formed on the basis of the market, but on some free estimates.

In his interview for N1, Kapor explains that the price is determined on the basis of the decision of the Ministry of Mining and Energy, which is in turn influenced by the Ministry of Finance, and this has been the case since February 2022.

- I see no reason why the market should not decide on the price. Prices on the global market have stabilized, they are at a relatively low level compared to the period of several years ago, and I do not see that them being excessively higher in the upcoming period - he said.

As he stated, there are many factors that affect the prices of derivatives.

- We are a landlocked country, we don't have access to the Mediterranean, so transport costs are higher than in other countries - he said, citing as an example Bulgaria and Romania, which have access to the Black Sea, so derivatives are significantly cheaper.

In Serbia, there is a "corrective factor" which no one knows about except in the relevant ministry, Kapor told N1.

- They freely determine what the corrective factor will be. Excise duties and tax policy in our country are at a significantly higher level compared to other countries, and this is a significant income for the budget of Serbia -he emphasized.

He says he doesn't see any reason why the state would interfere in determining the price of oil.

Miodrag Kapor

fuel prices in Serbia