The Serbian government froze fuel prices “to prevent greater upsets and maintain the living standard of the citizens”, a press release said.
The press release added that the maximum retail price of petroleum products Euro diesel and Euro premium BMB 95 are set at 179 Dinar and 171 Dinars a litre, respectively.
Economists Goran Radosavljevic and Danica Popovic predict that one of the possible scenarios that could happen after the price freeze could be fuel shortage.
Danica Popovic thinks that the prize freeze is a pre-election move: “No price freeze has ever produced results. The only result may be the future lack of fuel.”
She adds that everyone who has heard about the price freeze will now hurry to petrol stations to buy as much fuel as possible. If that happens, the black market will flourish.
According to Goran Radosavljevic, it is difficult for anyone to say with certainty what will happen, because everything depends on the fluctuation of prices on the global crude oil market. “At the moment, prices are still rising slightly. However, some fuel companies have reduced their price margins, but the state has not reduced its excise duty on fuel,” Radosavljevic explains.
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