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Montenegro’s Strategic Fuel Procurement for 2026

Government Allocates Funds for Diesel Reserves

In a bid to bolster its energy security, Montenegro is set to invest between €9 million and €12 million in strategic diesel purchases scheduled for 2026. This initiative aims to enhance the country’s mandatory fuel reserve system by procuring approximately 12,000 to 16,000 tons of diesel. The final quantities will be influenced by prevailing market prices and available budget allocations.

Compliance with EU Standards

The Montenegrin government has based its procurement strategy on an indicative price of €750 per ton of diesel. This plan aligns with a newly adopted law that adheres to European Union standards requiring member states to maintain reserves sufficient for three months’ consumption in the event of supply disruptions. Scheduled deliveries are planned for December 2026, with storage designated at state-owned oil terminals located in Bar, which are currently earmarked for urgent refurbishment.

Storage Capacity Enhancements

The upgrades at these facilities aim to boost their storage capacity to around 17,600 cubic meters. However, should the refurbishment not meet deadlines, contingency measures have been proposed—such as utilizing temporary storage options through local distributor Jugopetrol or securing space abroad in Croatia or Italy. Estimated costs associated with third-party storage stand at about €5 per ton monthly.

Additional Procurement Initiatives

Simultaneously, Montenegro has initiated another procurement endeavor worth €11 million aimed at acquiring up to 16,500 tons of EN 590 diesel intended for delivery by April 2026. Once received, this batch will be stored at Jugopetrol’s terminals in Bar over a three-year period. Notably, private-sector importers like Jugopetrol and INA have already satisfied a significant portion—approximately 40%—of the country’s reserve requirements due by next year; thus leaving only a smaller fraction reliant on state provisions.

Surcharge Implementation for Funding

To finance these strategic stock enhancements effectively, the Montenegrin government introduced a surcharge on fuel sales amounting to €0.03 per liter starting early in 2025. This charge is projected to remain until the end of that year before being reduced slightly—to €0.02 per liter—in order continue supporting maintenance efforts related to the national reserve system beyond that point.

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