Retail fuel prices in Serbia have been going up almost on the daily prices with the price of diesel reaching an incredible 175 dinar per litre.
Petrol station owners claim that the reasons for this are higher global crude oil prices on stock exchanges and the low water level of the Danube, and add that they could not predict how far the prices would go.
The prices of fuel at petrol stations in Serbia show no sign of topping with the regular diesel now costing 170 dinars per litre and the diesel with special additives retails for 175 dinars per litre.
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It is very difficult to estimate at the moment whether the price hikes will stop. Nebojsa Atanackovic, one of the owners of AD Nafta, says that he hopes the newest trend of high fuel prices would stop and that the there would be no more price hikes for the foreseeable time.
Why are the prices jumping?
Experts say that the fuel prices are jumping primarily because of the ever-growing global price of crude oil due to the crisis in Iran. According to the Association of Oil Companies of Serbia, the global price of the Brent type oil stopped growing on 3rd October.
“It remains to be seen whether Brent will remain at this level only temporarily or in the long run. The previous month, the price of this type of crude oil jumped by 22% to USD 86.29 per barrel, the highest price in the last four years”, the Association says.
Continuous price growth in the Serbian market
The Association of Oil Companies explains that in this period before the US sanctions against Iran take place, no-one knows for sure whether a global supply of crude oil will be able to meet the current demand, which leads to significant fluctuations in the prices over the course of the past week.
“For example, on Tuesday, after closing of stock exchanges the prices grew compared to the previous day, and yet, in the five days prior that, they fell”, the Association explains.
Domestic market supply jeopardized
“In addition, the supply of diesel fuel has dropped significantly, primarily as a result of several months of problems in the supply of imported fuel and its transport via the Danube River. Due to the extremely low water level, ships carrying oil derivatives are able to load up only one-third of their capacity, and occasionally not even that much. All this led to an increase in the cost of transport per unit of production, and to the lack of imported fuel. We have to bear in mind that diesel makes 34% of the entire fuel consumption in Serbia”, the Association explains.
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