The President of Serbia, Aleksandar Vučić, has announced that the government will do everything in its power to provide regular supply of fuel, but has indirectly admitted that the price increase is inevitable.
The government decree on capping the price of fuel is still in force, which refers to Eurodiesel and Euro premium BMB, which currently cost 179 and 171 dinars per litre respectively. This decree will be in force until March 13. Economy experts have been argued that capping the prices of fuel is the wrong way to go and that they are certain that there will be supply shortages once the decree is no longer in force.
Economic analyst Bogdan Petrović argues that the price increase was expected and the main culprit is precisely the price capping. As the President himself pointed out, the wholesale price of Eurodiesel in oil refineries is 193 dinars, while the price at gas stations is 179. This means that since the beginning of the decree’s implementation, all oil companies have been at loss.
“Further prolongation of this decree would lead to shortages, which is why the state had to intervene in this way,” Petrović explains.
This post is also available in: Italiano