Will the ban on Russian oil lead to higher fuel prices in Serbia?

Due to the sanctions that will stop the delivery of Russian crude oil to Serbia, oil derivatives in Serbia should not become more expensive, says energy expert Miodrag Kapor, referring to the new European sanctions against the Russian Federation.

“The price of (oil) derivatives in Serbia should not go up because of the latest sanctions. This has no economic logic. The only change that sanctions will cause is to reduce the profit of NIS-Gazpromneft, and to some extent Serbia, due to the adjustment of the price of imported oil on the market,’ Kapor said, adding that Serbia does not lag behind surrounding countries in terms of oil derivatives prices.

He also says that the procurement and processing of Russian oil have so far allowed NIS-Gazpromneft to generate substantial profit. “The demand for Russian oil was lower and we and especially Gazpromneft benefited from this because they have a majority stake in NIS (the Petroleum Industry of Serbia). They used to export oil derivatives and lubricants to surrounding countries and had cheaper oil derivatives than other countries, which is not going to happen now,” he said.

Speaking about the announcement of the construction of an oil pipeline that would connect Serbia and Hungary, Kapor said that having such an infrastructure connection is good, but we should assess first whether it is commercially and economically justified.

“I do not think that Croatia is an unreliable partner and we can still receive crude oil via their JANAF pipeline, except it cannot be Russian oil. Even if we build that pipeline with Hungary, we cannot get Russian oil through that pipeline either,” Kapor concludes.

(B92, 09.10.2022)


This post is also available in: Italiano

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