Serbia to reduce excise taxes on fuel by 40% due to rising gas prices

Serbian President Aleksandar Vucic has announced a 40% reduction in fuel excise taxes as part of urgent measures to ensure energy security amid rising gas prices.

According to the Balkan bureau of Report, Vucic made the announcement to journalists after an extended meeting of the National Security Council dedicated to the energy situation.

According to the head of state, the price of natural gas has reached €735 per 1,000 cubic meters-the highest level in three and a half years. In this regard, the authorities intend to implement a series of measures in the coming months.

Vucic added that without government intervention, the price of 1 liter of diesel fuel would be 257 dinars (€2.18) instead of the current 208 dinars (€1.77). "Today, we will increase the price of diesel fuel by only 4 dinars, to 212 dinars (€1.80), and gasoline will increase by only 2 dinars," he said.

The president emphasized that energy security is a key issue for citizens. "When we talk about energy, we're not just talking about oil. Gas is a more serious issue today. The price of €735 per 1,000 cubic meters is the highest in the last 3.5 years," he stated.

Vucic added that reducing the excise tax by 40% would lead to a total reduction of approximately 61%. At the same time, the state would effectively forgo some revenue to keep prices down: annual excise tax revenues amount to approximately €2 billion and are used to finance infrastructure, healthcare, and security forces salaries.

The president identified maintaining fuel prices and ensuring uninterrupted supplies as the main objectives in the energy sector.