Higher gas bills could be just the beginning: Will there also be increases in the prices of food, transportation...?

A new fuel price increase is in effect as of today, but higher gas bills could be just the beginning - because the logical question that arises is: will more expensive diesel and gasoline trigger a new wave of price increases for food, transportation, and other products?

While there is still no response from the Government, the opposition is demanding an urgent reduction in excise duties.

Meanwhile, the global market is facing new disruptions – from refinery problems to uncertainty over oil shipments through the Strait of Hormuz.

How much will all this cost the citizens of Montenegro and does the state have a way to mitigate the new blow to standards?

Citizens of Montenegro are paying more for fuel as of today. A liter of Eurodiesel is nine cents more expensive and now costs EUR 67, while both types of gasoline have increased in price by two cents. For drivers who fill a 50-liter tank, this means they will pay four and a half euros more for diesel than two weeks ago.

"The increase in fuel prices does not mean that citizens will only pay higher fuel prices at the pumps. It means that the prices of basic foodstuffs and all products and services will also increase in the coming period. Just one piece of information is enough for you. Since they took power, they have collected two billion euros in various excise duties. Two billion euros. And what do citizens get from that? Only higher prices, higher taxes, a more expensive life and a poor standard of living," said Democratic Party of Socialists (DPS) MP Nikola Rakočević.

The European Union is also calling for a reduction in excise taxes, but without optimism that this will happen.

"I think that every responsible government should react and protect primarily the citizens' budget, the citizens' standard of living, and only then think about filling the budget. With the kind of government we have, I'm afraid that won't happen," said European Union MP Nikola Zirojević.

Will they or won't they - the Government has not responded. According to the Civic Movement URA, they are already late in reducing excise taxes.

"The government should have thought about this earlier. You know that the last time, when fuel prices rose, excise duties were reduced more due to public pressure than the government consciously wanted to do, because their maxim is that inflation is good for the state, but bad for citizens because that is how the budget is filled. The government, instead of dealing with the problems of prices, bills, purchasing power, with the money being devalued, is dealing with reconstruction issues, issues of dividing up departments," said Mileta Radovanić, MP from the Civic Movement URA.

While Montenegro is debating how much the country can mitigate the consequences, the problem on the world market is no longer just the quantity of oil. Although some crude oil supplies from the Persian Gulf are gradually being restored, the global market is facing a new problem - a lack of refining capacity.

To become gasoline, diesel or jet fuel, crude oil must first pass through refineries. However, current production is significantly lower, due to damaged facilities, disrupted transport routes and reduced production in some countries. Diesel is a particular problem. Russia, one of the largest exporters of the fuel, has reduced exports after attacks on its refineries, while problems in the Middle East have further limited supply.

Conflicts between Israel, the United States (US) and Iran have once again called into question the passage of tankers through the Strait of Hormuz, which before the crisis carried about 20 percent of global oil trade. For Montenegro, which does not have its own refinery and is almost entirely dependent on imports of finished products, any disruption in the international market quickly spills over into prices at the pump.

The price that citizens pay is not only influenced by the price of a barrel of oil, but also by the prices of finished derivatives, transportation costs, the dollar exchange rate, and taxes and excise duties. Therefore, even a possible drop in the price of crude oil does not automatically mean cheaper fuel. If diesel remains more expensive on the international market due to problems with refining and a shortage of supply, the pressure on prices may continue.