The Serbian Government in the coming hours would decide on waiving 20 per cent excise taxes on petroleum products to curb rising fuel prices.
The budget is poised to lose 30 million euros (33 million U.S. dollars) per month, Serbian Finance Minister, Sinisa Mali, said on Thursday.
Fuel prices in Serbia rose on Thursday to 1.59 euros (1.76 U.S. dollars) per litre of gasoline by the Petroleum Industry of Serbia.
This is owned by Russia’s Gazprom Neft together with state and private shareholders, and to 1.63 euros (1.8 U.S. dollars) per litre of gasoline by Austria’s OMV.
The government had been capping fuel prices at a maximum of 1.5 dollars per litre since Feb. 10, yet the restriction was effective for one month only.
“We have to take care of our citizens and in order to stabilise the market of petroleum products, the government will waive 20 per cent of excise duties on fuel for the next month.
“With the reduction in excise duties, budget revenues will drop by 30 million euros per month, yet our finances can withstand such losses,’’ Mali said at a briefing.
It added that the Serbian cabinet would also impose restrictions on the export of wheat, corn, oil and flour.
President Aleksandar Vucic said earlier that the Serbian government had ensured sufficient oil reserves and was investing some 100 million euros to fill everything to the top.
The Petroleum Industry of Serbia, with 65.15 per cent of shares owned by Gazprom Neft, is the only oil refining and production plant in Serbia and the largest such plant in the region.
In January, the company signed a new one-year contract with the operator of the JANAF oil pipeline, which transports 3.2 million tonnes of Russian oil from the port of Omisalj in Croatia.