The state has done a good thing by reducing fuel excise duties, but this can only have short-term effects, believes retired economics professor Ljubodrag Savić. The long-term consequences of rising fuel prices, he points out, will be less money in the budget, less for wages, pensions, healthcare and other sectors.
A litre of Euro diesel will cost a maximum of 212 dinars until Friday, 27 March, while the price of Euro Premium BMB petrol will be 188 dinars per litre. Last week, a litre of diesel cost 208 dinars, and before that 203 dinars.
According to Vučić, today’s price of Euro diesel based on market quotations would be 257 dinars. With a 20 per cent reduction in excise duties, the price would amount to 242 dinars, but the state decided to cap it at 212 dinars.
He said that these state measures are good, but only in the short term.
“What the state has done is correct, but it will only help in the short run. And it comes at a cost — the cost is that there will be less money in the budget, it will be harder to build roads, to increase wages and pensions, and less will be allocated to healthcare and other areas. If this continues (the conflict in the Middle East), I am not sure we will overcome it easily. Serbia has good foreign exchange reserves, we have been buying gold, the budget is in a solid condition, but these are parameters that can hold up well for several months. When problems arise, savings are quickly spent. We must seriously understand this situation that countries find themselves in once every 20, 30, or 50 years,” the economist explained to N1.
Savić believes that wealth redistribution is necessary, i.e. introducing taxes to be paid by the wealthy.
The state has done a good thing by reducing fuel excise duties, but this can only have short-term effects, believes retired economics professor Ljubodrag Savić. The long-term consequences of rising fuel prices, he points out, will be less money in the budget, less for wages, pensions, healthcare and other sectors. From today at 3 p.m. until Friday, 27 March at the same time, a litre of Euro diesel will cost a maximum of 212 dinars, while the price of Euro Premium BMB petrol will be 188 dinars per litre. Last week, a litre of diesel cost 208 dinars, and before that 203 dinars.
According to Vučić, today’s price of Euro diesel based on market quotations would be 257 dinars. With a 20 per cent reduction in excise duties, the price would amount to 242 dinars, but the state decided to cap it at 212 dinars.
He said that these state measures are good, but only in the short term.
“What the state has done is correct, but it will only help in the short run. And it comes at a cost — the cost is that there will be less money in the budget, it will be harder to build roads, to increase wages and pensions, and less will be allocated to healthcare and other areas. If this continues (the conflict in the Middle East), I am not sure we will overcome it easily. Serbia has good foreign exchange reserves, we have been buying gold, the budget is in a solid condition, but these are parameters that can hold up well for several months. When problems arise, savings are quickly spent. We must seriously understand this situation that countries find themselves in once every 20, 30, or 50 years,” the economist explained to N1.
He believes that wealth redistribution is necessary, i.e. introducing taxes to be paid by the wealthy.
“If the crisis continues, there will have to be a redistribution of wealth… I expect the state to help the most vulnerable through redistribution of wealth. I do not believe it will pass without the introduction of additional taxes, but they should apply to those who can afford to pay,” Savić emphasised.
He recalls 2008 (the global economic crisis), when, as he notes, the price of oil reached 147 dollars. He says it is not the case today, but that does not mean it will not be.
“Today the world is fragmented, interests differ… The war in Ukraine did not threaten the entire world. It threatened the European Union and Russia, but what is happening in the Middle East threatens the whole world. At this moment we are suffering direct consequences, but I fear it will last longer than people assume,” Savić added.
It appears that MOL’s purchase of NIS has been prolonged, and Savić believes that the timing of its completion will depend on the elections.
“If there had been no war, I think it would have been completed more quickly… ADNOC was supposed to be an anchor of stability for MOL in the purchase of NIS. If it entered ownership, it would transport its oil via JANAF, which is significantly cheaper… They will probably be partners, but they cannot behave as if the situation is normal… I think the decisive factor for MOL will be the elections. If the government wins, it will be realised quickly. Otherwise, it may be postponed,” he stated.
Parliamentary elections in Hungary will be held on 12 April 2026.
(Biznis.rs, 21.03.2026)
https://biznis.rs/vesti/srbija/savic-smanjenje-akciza-na-gorivo-moze-imati-samo-kratkorocne-efekte/