Autogas price going for RSD 90 per liter? - LPG price in Serbia still growing

The price of liquefied petrol gas is still going up. In only four months this year, the price of autogas grew by almost RSD 20 per liter.

Although oil companies claim that car gas price increase in the winter is a normal thing, drivers say it has never been more expensive.

Whose fault is it? Drivers are angry with oil companies and oil companies point their finger at the state.

- The truth is he fact that the so –called seasonal peak this year is a bit higher. Price is set based on the supply and demand. Since Serbia mostly imports LPG, we are sensitive to all changes in the region and currently there is a great demand for this fuel. Market is alive and unpredictable and factors which influence it are numerous for instance, sufficient to close one production section in Russia or Romania so the price in the whole region increases – says Tomislav Micovic, secretary of the Association of Oil Companies of Serbia.

Still, the analysis of LPG wholesale prices in December this and last year, as recently reported by the daily Novosti, shows that now a kilogram of gas costs RSD 145.8 and 12 months ago it was priced at RSD 147. This means traders who decide on the amount to be earned generate “leaps” in prices at filling stations.

Our interlocutor does not comment on the concrete amount of margins, but he reminds that competition regulates them and claims consumers in Serbia are well-protected here and that salesmen are not responsible for increases.

-Consumers in Serbia have a sufficient choice of supplying sources and points of purchase. All companies plan higher sales and, therefore, decrease prices as much as they can. High prices are not convenient for them either because they decrease the turnover.

The state has the biggest influence on car gas price increase which makes this fuel less competitive, oil companies think. Firstly, in November 2012, car gas excise calculation was changed and excise for bottled gas was implemented which did not exist before.

So-called state intakes when it comes to car gas in Serbia total 31,5% of retail price and are the highest in region for sure, our collocutor says. With the new Law on excise which will become effective January 1, 2014, the percentage will increase even more.

(Photo: Ivana Vuksa)

Only Hungary where the level of state intakes of LPG totals some 30% of the retail price can compare with us while the percentage in other countries is lower – Croatia takes 20,3%, Slovenia 28,7%, and Bosnia and Herzegovina 12,8%, of what drivers pay at gas station.

Excise now totals RSD 30 per kilogram of car gas and as of January 1 2014, it will increase for RSD 5 more, i.e. some RSD 2, 7 per liter. This increase will imply increase of VAT base (of 20%). If oil companies opt to transfer complete amount to consumers, which is highly likely, only based in this, TNG will practically be more expensive for citizens for some RSD 3,24. Will gas break new limit of RSD 90?

Hot season

Unlike other oil derivatives, LGP price depends on the season. It goes up before the winter and decreases in the spring, our collocutor explains.

Unfortunately, due to expected increased excises, there is no reason to expect good news in April.

- We expect new increases. Still, the price in the spring will have to decrease compared to the one which will be formed in January – our collocutor says.

New Year is not an end to strikes to the Serbian LPG market, As of January 2015, excises will increase by RSD 5 per kilogram of liequefied petrol gas. And there remains the question of other factors – what oil companies will do in the meantime, what the oil price trends in the world will be…

Valid – invalid attests

Whether they have a valid attest for LPG devices in cars, drivers are forced to carry out a new control check. It will cost RSD 6.000 despite the fact that papers are valid for a few years more.

The Regulation on vehicle check remained.

The Agency for Traffic Safety (which was mentioned as one of the main supporters of implementation of these regulations) says that as for now there are no crowds for tests and that drivers do their checks before registration quickly.

- Our attitude was that drivers who have a valid attest do not have to do control checks and we reported that to superiors. Still, decision was not up to us. We are setting conditions for anybody now to do control check of LPG device but we are only accountable for providing control spots. In fact, we provide citizens to do it if they ask for it themselves. And who provides the order for companies which deal with vehicle registration to condition druvers to do that, you have to ask them – Jovanovic says.

M.S.