The Ministry of Energy and Mining expects that fuel prices will not increase in the next ten days, but rather that they should fall, but in response to questions from "Vijesti" they said that they are monitoring the situation and will propose measures such as reducing excise duties if there is a significant increase in the prices of petroleum products on international stock exchanges.
The Ministry points out that the current price of Eurodiesel in Montenegro, even after Monday's increase of eight cents per liter, is 40 cents lower than the record from 2022 (1,78 euros), when the then government reduced excise duties to limit price increases. Eurodiesel is the most sought-after fuel, used by 78 percent of the total number of registered motor vehicles.
Eurosuper 95 and Eurosuper 98 increased in price by two and three cents on Monday, costing 1,45 euros and 1,49 euros respectively. The new price of Eurodiesel increased by eight cents to 1,38 euros, and heating oil by seven cents to 1,31 euros.
War, stock markets and the period of reckoning
The war in the Middle East between Israel and Iran, which eventually involved the United States, culminated between June 13 and 24, causing a significant increase in oil prices on international stock exchanges. On June 10, the price of a barrel of oil was around $66, peaking at $19 on June 77. On the day of the ceasefire, June 24, the price returned to $66 per barrel.
Retail prices in Montenegro are calculated every other Monday based on the average of petroleum product prices in the previous 14 days from the calculation date, compared to the 14 days before that period. During the last price calculation, it happened that the calculation period included days of significant price growth on the stock exchanges, and that they began to fall at the end of the calculation period.
Therefore, the price reduction on the stock exchanges did not significantly affect the price calculation on Monday, which will be valid until July 14, but will affect the next calculation period.
Far from the record from 2022.
The Ministry says that they are monitoring the price movements of petroleum products on the global market, which is why they expect that in the coming period there could be a stabilization and possible decline in prices.
"On the petroleum products market, price fluctuations in the range of 0,20 euros, on an annual basis, are completely normal. We remind you that in 2022 they were at a significantly higher level (the average price of diesel during 2022 was 1,56 euros, while for example in June 2022 the price of diesel was 1,78 euros), when the excise duty was reduced. In light of the developments in the Middle East, a session of the Council for Ensuring the Secure Supply of Petroleum Products to the Market was held, chaired by the Minister of Energy and Mining, Mr. Admir Šahmanović, which analyzed the current situation regarding the availability and prices of petroleum products, with a focus on two key segments: security of supply and price trends. It was established that the supply of petroleum products in Montenegro is not currently threatened," the Ministry stated in response to questions from "Vijesti" about market and price stability.
Will respond if there is new growth
They also indicate that they are in direct communication with all major companies that supply the Montenegrin market.
"All assessments indicate that there is no reason for concern when it comes to the continuity of deliveries to Montenegro, while the price segment will be analyzed continuously, and followed up with an adequate response, depending on the situation," they stated in the response.
4,2 million collected from special fee, bids for reservoirs on July 9
From February 11 to the end of May, the state earned 4.220.189,04 euros from the fee for mandatory reserves of petroleum products, which amounts to three cents per liter of fuel.
This money is in the sub-account of the Hydrocarbons Administration of Montenegro within the budget of Montenegro. The Ministry states that the process of forming reserves is planned to begin at the end of 2025.
According to the Law on Security of Petroleum Supply, Montenegro should have reserves of petroleum products in the amount of three months of consumption. The previously provided EU aid of 7,5 million euros was directed to form the reserves, while the plan is to generate 13 million euros annually from a special fee on the price of fuel of three cents.
The oil reserves would initially be held in reservoirs in Bar, with later possible alternatives being reservoirs in Lipci and Bijelo Polje. Part of these reservoirs has been used by Jugopetrol for the past 20 years, which lost the dispute in court.
"The reservoirs in Bar, Lipci and Bijelo Polje are state-owned. In February 2025, an official handover of movable and immovable property at the Port of Bar and Lipci - Municipality of Kotor was carried out between the enforcement debtor Jugopetrol and the state of Montenegro, pursuant to the enforcement decision of the Basic Court in Bar dated August 1, 2024 and the Basic Court in Kotor dated August 21, 2024," the Ministry stated.
These reservoirs are in poor condition, which is why the Ministry announced tenders for their maintenance, first in December last year (which was canceled due to delays in taking over the reservoirs), and then in May this year, when the deadline for submitting bids was extended three times.
"The open tender procedure for the adaptation and modernization of the state-owned storage tanks R11, R12 and R18 at the terminal in Bar, with a total capacity of 17.600 cubic meters, is underway, and the opening of submitted bids is scheduled for July 9, 2025. The value of the works is 2.127.135,93 euros including VAT. The deadline for the completion of the works is nine months from the moment the contractor is introduced to the job. The warehouses in Bar are specifically intended for storing mandatory reserves of petroleum products, while a feasibility study is planned for the reconstruction of the storage tanks in Lipci and Bijelo Polje, which primarily requires an overview of the scope of the works and the financial aspect," the Ministry stated.
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