New fuel price increase from Tuesday?

The Ministry of Energy and Mining will announce new fuel prices tomorrow, and due to the price jump on world stock exchanges, the price of diesel in Montenegro could increase by another 10 cents from Tuesday, economic analyst Davor Dokić told Television Vijesti.

He adds that gasoline could go up by four to five cents. A liter of diesel is currently 1,67 euros, while the prices of Eurosuper 98 and 95 are 1,68 and 1,64 euros, respectively.

To prevent an inflationary shock, Dokić expects the Government to lower excise taxes on fuel again tomorrow.

The government returned the full amount of excise taxes at the beginning of July, after reducing them in previous months due to the price spike. When fuel prices then fell, the government gradually returned excise taxes, so drivers did not feel the price reduction.

"I think that both Finance Minister Novica Vuković and Prime Minister Milojko Spajić are monitoring this situation and that they simply will not allow us to start an inflationary spiral, because it is very difficult to stop it later. So I expect the Government to react. We have this option built into the law. We can halve the excise tax. So, Montenegro has the option for the Government to halve the excise tax. Simply put, members of the Government can make that decision and a reduction of up to 22 cents is what they can do. That would significantly slow down this really sudden increase in the prices of petroleum products. All eyes must be on the war between America and Iran, because even this Government measure, which may be adopted tomorrow, is short-lived," said Dokić.