State Diesel Reserves at 269,000 Tons - Additional Supplies on the Way, Only 25% of Planned Fuel Imports Completed So Far

Due to increased demand and difficulties with imports, inventories held by oil companies that also operate as wholesalers have been significantly reduced. State diesel reserves amount to 269,000 tons, with additional supplies on the way, Minister of Mining and Energy Dubravka Djedovic Handanovic said.

She spoke with Tomislav Micovic, Secretary General of the Association of Oil Companies of Serbia, about the situation and the supply of petroleum products on the market. During the meeting, it was noted that imports of petroleum products have been significantly hindered by the low water level of the Danube and global circumstances, including disruptions on the global market, rising crude oil prices and Mediterranean quotations.

Djedovic Handanovic said that only 25% of the planned imports of petroleum products for July have been completed so far, explaining that imports have been hampered by the low water level of the Danube, as barges can carry only 30 to 40% of their total capacity.

In this situation, she stressed, transportation is being carried out by trucks or rail, but this is not sufficient to import all the planned quantities, is more expensive and affects prices that are already extremely high. The minister added that this situation clearly demonstrates that the Pancevo refinery is crucial for the regular supply of petroleum products.

According to her, demand on the market has increased, as it always does at this time of year, but in addition to the natural seasonal increase, there is additional pressure on the wholesale market due to the continuous rise in market prices. The minister pointed out that this increase is primarily influenced by global conflicts, which prompted the state to intervene by reducing excise duties by 20% in order to stabilize the market.

* Regardless of our reserves, which have doubled over the past three years and which we continue to increase, they are a backup solution that we will use in emergencies, as we have done previously, but the regular operation of the refinery is crucial if we are to maintain market stability - she emphasized.

The minister concluded that extending the operating license for Naftna Industrija Srbije (NIS) would enable the Pancevo refinery to increase the processing and production of oil and petroleum products to maximum capacity in order to overcome the situation caused by reduced imports due to logistical challenges resulting from natural conditions, high prices and import costs.

According to her, if NIS's license is not extended, supplies will depend on state reserves, as imports are significantly hindered, the water level of the Danube is very low and consumption is at its peak.

Ministarstvo rudarstva i energetike Republike Srbije

Udruženje naftnih kompanija Srbije Beograd

NIS a.d. Novi Sad

NIS a.d. Petrol Rafinerija nafte Pančevo

Ministry of Mining and Energy

Association of Oil Companies of Serbia

Petroleum Industry of Serbia

Pancevo Oil Refinery

Dubravka Djedovic Handanovic

Tomislav Micovic

petroleum product imports

petroleum products market