Danube deliveries fall, rail and road cannot fully substitute
Serbia’s Ministry of Mining and Energy said river deliveries have fallen sharply due to exceptionally low water levels on the Danube. The ministry stated that the shortfall could not be fully replaced by rail and road transport. Energy Minister Dubravka Đedović Handanović estimated that river transport is operating at only 30–40% of normal capacity.
Serbia has authorized oil companies to temporarily use their mandatory operational diesel stocks to address the disruption . The measure is intended to prevent shortages and limit upward pressure on retail prices while import logistics remain constrained. Companies will be required to replenish the released volumes once transport conditions normalize.
Operational stocks, not strategic state reserves
The decision does not involve Serbia’s strategic state-owned fuel reserves. Instead, it concerns operational stocks held by market participants as part of their mandatory supply-security obligations . The government said the approach is designed to bridge the period when river logistics are restricted.
Officials also noted that releasing operational reserves can cover a temporary disruption but does not remove the underlying transport bottleneck. If low water persists, freight costs could rise and affect refinery feedstock planning. Further fiscal or inventory measures may be needed to prevent wholesale-market pressure from reaching consumers.
Pančevo refinery operations continue; excise duty cut assessed
The Pančevo refinery, operated by NIS, continues running at full capacity. The government plans to extend the refinery’s operating authorization beyond its current 31 July expiry date, allowing crude processing to continue without interruption.
Serbia has separately reduced excise duties on petroleum products by 20%. Government officials, NIS, and the Association of Oil Companies of Serbia have reviewed commercial inventories and alternative import routes to determine whether additional intervention is necessary.
River logistics remain central to fuel supply routes
The situation highlights the role of river logistics in Serbia’s fuel market. The Danube is described as a comparatively efficient route for transporting crude and petroleum products, while rail and road alternatives have higher costs and more limited short-term capacity.
As import constraints persist, the balance between released operational stocks and replenishment timelines will depend on when river deliveries return closer to normal levels. The government’s actions are focused on maintaining supply continuity during the period of restricted transport capacity.
