Government prevents fuel price spike: Diesel price drops, gasoline price unchanged

The Government of Montenegro has decided to temporarily amortize the expected increase in retail fuel prices through the correction of excise duties.

Thus, until the next calculation, diesel will cost 1,65 euros, instead of the expected 1,81 euros, while the price of gasoline will remain unchanged, instead of the expected jump of seven or eight cents per liter.

The excise duty on diesel was reduced by 30 percent, and on gasoline by 10 percent.

"Based on a detailed analysis by the Ministry of Finance of price movements on the international oil market and their impact on the living standards of citizens and the business environment in our country, the Government has made a decision to temporarily amortize the expected increase in retail fuel prices through the correction of excise duties. Through decisive intervention, the Government will enable the retail price of fuel to be lower than the current one, so that until the next calculation, citizens will pay 1 euro and 65 cents for diesel, instead of the expected 1 euro and 81 cents, while the price of gasoline will remain unchanged, instead of the expected jump of 7 or 8 cents per liter," the Government announced.

They add that this measure is "part of a responsible fiscal policy aimed at preserving citizens' purchasing power, controlling inflationary pressures, and supporting the economy."

"We would like to remind you that the current increase in energy prices is a consequence of disruptions in the international oil market, geopolitical tensions and conflicts in the Middle East, which Montenegro cannot influence. We also note that the Government has previously used the legal possibility of temporarily reducing excise duties to mitigate the increase in fuel prices whenever this was justified. Also, bearing in mind that during the height of the tourist season, a significant portion of fuel in Montenegro is purchased by foreign tourists and transit passengers, taxpayers' funds must be treated with special care in the coming period. This means that during the season, an environment should not be created in which they would be used to subsidize visitor consumption, instead of financing healthcare, education, pensions, capital investments and other public needs," the Government announced.

They also add that responsible fiscal policy implies that government measures are adopted when citizens and the domestic economy benefit the most from them, and not when their dominant effect would be to favor seasonal consumption by foreign citizens.

"The government will continue to monitor market developments in the coming period and, in accordance with fiscal capabilities, take timely measures that protect the interests of citizens and contribute to economic stability," it was announced.