Gas station owners: Trade margin on verge of sustainability, falling from 21 to 10 dinars

The increase in retail prices of diesel and gasoline in Serbia by one dinar per liter and the simultaneous daily increase in wholesale prices have halved the trading margin and brought business to the brink of profitability, said gas station owners.

They expected the Serbian government to adjust fuel prices by three to five dinars per liter, but only one dinar per liter increase is allowed for both diesel and gasoline. Fuel prices have been under control since March 2022, when the war in Ukraine began, and since a month ago, when the war in the Middle East between the United States, Israel and Iran began, they have been “out of control” due to the rise in the price of crude oil, from around USD 65 per barrel to almost USD 120.

– The wholesale price of diesel is 203 dinars today, 204 dinars as of Monday, and we have the right to sell it at the highest price of 214 dinars as of yesterday because it was raised by only one dinar per liter. Of the 21 dinar trade margin per liter of fuel as of February 28, about 10 dinars are now being realized, and that cannot cover business costs – the owner of the Knez Petrol gas stations, Srdjan Knezevic, told Beta.

He added that the Association of Private Gas Station Owners had asked the Ministry of Mining and Energy to “bring back” (enable) the margin to 21 dinars per liter, but that there had been no response.

Knezevic said that he had planned to open ten gas stations in several cities in Serbia, in Cuprija, Bor, Mladenovac, Barajevo and other towns, but that he would probably have to “freeze” them, because he couldn’t cover the costs from his earnings.

He pointed out that the state had set the prices of petroleum products once a week, and that in Naftna industrija Srbije, which sold them, prices were rising every day, meaning that gas station owners were caught between wholesale and retail prices, and as a result, their earnings were decreasing.

According to the owner of the Taksi Petrol gas stations, Nenad Jovancevic, fuel trading is entering the red zone.

– I acquired reserves a few days ago and will somehow last until next Friday, and then I will run into problems due to low margins – said Jovancevic.

Serbian citizens did not feel any relief after the announcement by Serbian President Aleksandar Vucic two weeks ago that the state would reduce excise taxes by an additional 40%, for a total of 61%. Vučić announced on March 20 that the state would reduce excise taxes on fuel by an additional 40%, which, with the previous reduction of 20%, would total 61%. The aim of the announced measure, as the Danas daily wrote, was for the state to take over part of the burden from citizens due to the increase in oil prices due to the Middle East war.

The Association of Oil Companies of Serbia (UNKS) and the Association of Private Gas Station Owners have confirmed to Danas that excise duties are still only 20% lower. The Association of Private Gas Station Owners told the portal that the Serbian Government had not yet passed a regulation that would enable a 61% reduction, and that such a decision had not been published in the Official Gazette either.

Udruženje naftnih kompanija Srbije Beograd

NIS a.d. Novi Sad

Knez Petrol d.o.o. Zemun

Taxi Petrol doo Pančevo

Ministarstvo rudarstva i energetike Republike Srbije

Association of Private Gas Station Owners

Association of Oil Companies of Serbia

Naftna industrija Srbije

Knez petrol

Taksi petrol

Ministry of Mining and Energy

Srdjan Knezevic

Nenad Jovancevic

Aleksandar Vucic

fuel prices at gas stations

trade margins for petrol and diesel fuel

excise taxes on fuel