The announced fuel marking in Montenegro, according to which nanoparticles will be added to all types of fuel, is not in line with European Union standards, because in the EU only fuel that is exempt from excise duty or has a reduced excise duty rate is marked, the Delegation of the European Union in Podgorica told "Vijesti" when asked what the legal framework and EU directives provide regarding fuel marking.
In March this year, the Parliament adopted a new Energy Law, which stipulates that all types of fuel must be marked with markers (neutral nanoparticle powder) upon import, regardless of whether the full amount of duties (excise duty and VAT) has been paid on them beforehand or whether these importers and traders are exempt from these duties.
The fiscal strategy envisages marking all types of fuel as a measure to prevent illegal trade, although they have not provided evidence that such smuggling exists. The government's plan is to mark all fuel coming onto the market and later check at the pumps to see if any fuel without markers appears.
Representatives of oil companies and the Chamber of Commerce pointed out during the public debate on the law and during the debate in the Parliament that such marking does not exist anywhere in the European Union, and that it is pointless to mark fuel on which all duties have been paid during import. They also said that it is only logical to mark fuel on which duties are not paid (fuel for ships and yachts) in order to subsequently monitor whether such fuel appears on the free market.
The marking itself, according to the Government's decision, would cost up to 0,8 cents per liter, and would be paid by importers, while this cost would later be reimbursed through an amendment to the regulation on determining fuel prices. Over 400 million liters of fuel are sold in Montenegro and the figure is growing every year, so a company that will get the job of marking in this way can count on an income of 3,5 to four million euros.
The merchants were right, but the government was wrong.
The EU Delegation's response confirms that the traders were right, and the Government was wrong.
"The EU legal framework regarding fuel marking is established by Council Directive 95/60/EC on the fiscal marking of gas oils and kerosene, as well as by Commission Implementing Decision (EU) 2022/197 of 17 January 2022, establishing a common fiscal marker for gas oils and kerosene. Directive 95/60/EC obliges Member States to apply a fiscal marker to gas oil or kerosene that are exempt from excise duty or subject to a reduced rate of excise duty. Candidate countries are required to gradually align their legislation with the EU acquis, including in the area of excise duties, and must achieve full compliance by the time of accession," the EU Delegation told "News".
The EC's opinion was not requested.
When asked by "Vijesti" whether the Government of Montenegro had sought the opinion of the EC office in Podgorica regarding the new legal solutions related to fuel labeling, they replied that they were not officially aware of this and that there was only communication regarding the harmonization of Chapter 16, which relates to excise duties.
"The EU Delegation is not aware of the specific request of the Government of Montenegro for an opinion 'on new legal solutions related to fuel labelling'. We are in constant communication with the Montenegrin side regarding Chapter 16. In the area of excise duties, according to the Montenegrin roadmap for Chapter 16, the adoption of the new Law on Excise Duties is envisaged in the first quarter of 2026, with the aim of ensuring full compliance with EU directives. To this end, we have approved several expert missions under the EU TAIEX programme to support the competent authorities in the legislative process," they stated.
Controversial marking procedures
Fuel marking, as previously announced by the Ministry of Energy and Mining, will begin in the first quarter of next year (January - March). The preparation of the regulation defining how this marking will be done is underway, and has already been discussed by the working group.
The regulation stipulates that marking is carried out in warehouses in ports where fuel is unloaded from tankers, as well as at border crossings where it is transported by road in tankers. It is stated that upon arrival at the border, several fuel samples are taken from the tankers through the upper opening into special containers. In the containers, the fuel would be mixed with markers for that type of fuel, and then returned to the tanker “through the loading opening, or the opening for fuel quality control”. In the tankers, the fuel would be mixed again with special mixers, and then the percentage of markers would be checked. It is also stated that if it is not possible to insert this mixing device into the tanker, then the mixing would be done by driving, or rather the driver would drive the tanker from the border, “take a few laps” and return it to the border for marker control.
Oil traders have made a number of comments on the regulation. They believe that the procedure for pouring fuel into some containers at the border is contrary to safety regulations, and that newer tankers do not have the technical capabilities for such a procedure. They also point out that new tankers do not have openings through which the marked fuel from the container - bucket could be returned to the tanker, because according to new EU standards they have hoses with a magnetic connection system and high-pressure pumps, so it is impossible to pour anything into it. The problem is that some oil traders have completely switched to new tankers that are now not adaptable to this regulation.
MUP concerned about security
A member of the working group for drafting the rulebook was also a representative of the Ministry of Interior - Directorate for Protection and Rescue, which is responsible for controlling the transport, transfer and dispensing of flammable liquids, including fuel. According to information from "Vijesti", he pointed out at the working group that the rulebook does not provide for safety measures during marking, although it includes dispensing fuel from tankers at the border, and that it cannot be done outdoors. He also pointed out that the entire topic is extremely complex from the technical aspect of fire and explosion protection, bearing in mind that these are flammable liquids and gases and that handling them has an impact on the safety of people and property.
The Ministry of Interior also requested an answer as to whether new facilities will be built at the locations designated for fuel marking (border crossings) or whether existing ones will be reconstructed, as well as information on the means and equipment that will be used in the procedure itself.
In response to questions from "Vijesti" about the safety issues of the marking process, the Ministry of Interior stated that they had submitted an opinion to the competent Ministry of Energy and Mining and that they believe that "the subject matter is extremely complex and accordingly the Working Group will continue its further activities on the development of the aforementioned regulation."
A public call for a million-dollar job has been announced, are the participants already known?
Yesterday, the government announced a public call for the selection of a partner to carry out fuel marking, which, among other things, requires that the bidder or consortium has a laboratory in Montenegro with precisely defined certificates, to be a manufacturer or representative of a manufacturer of precisely defined nanoparticles (markers), as well as to have at least five active contracts for the sale of these markers to other countries.
According to information from "Vijesti" in Montenegro, there is only one such laboratory, and in this part of Europe there is only one representative of the manufacturer of such nanoparticles.
The conditions for selecting the bidders coincide with the marking conditions that have been implemented in Serbia since 2016, after the state admitted that it could not control the flow of fuel from the refinery and that arriving by barge on the Danube. Serbia is the only country in Europe that has such regulated marking of all types of fuel.
In Serbia, markers manufactured by the United States-registered manufacturer "Authentix" are used, and their representative is the Belgrade-based company "Nanoinspekt".
"Autentix", or rather their nanoparticles, also meet the requirements of the Montenegrin public call because they have contracts with five countries, namely Serbia, Congo, Mozambique, Botswana and Pakistan.
The Energy Law stipulates that the maximum marking price is determined based on the investment costs of the entity performing the marking. The government made the decision on the maximum marking price of 0,8 cents per liter ten days ago, before the entity performing the marking and its investment costs were officially known.
The condition is also that the bidder constructs a facility at the border crossing that complies with security regulations.
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