Serbia is considering a gradual reduction of fuel tax relief as oil prices ease, President Aleksandar Vučić said. He added that the country may soon begin phasing down temporary fuel tax relief measures introduced during the energy crisis. The government’s approach is linked to current market conditions for crude oil.
Excise tax reduction under review
Vučić said the government is considering cutting the current excise tax reduction in half. The change would reduce the fiscal burden from a 20% exemption to around 10% of excise revenue foregone. He indicated that a final decision could be taken in the near future if oil prices remain at current levels.
Global crude price context
The proposal comes as global energy prices show signs of easing. Brent crude oil was trading at around $78 per barrel, reflecting softer conditions in international oil markets. Vučić also noted that changes in crude prices are not immediately reflected at fuel stations.
Timing of retail fuel price adjustments
According to Vučić, retailers typically wait for market trends to stabilize before adjusting retail fuel prices. He said the fuel tax relief package was originally introduced during the energy crisis to mitigate the impact of elevated oil prices on consumers and businesses. If favorable market conditions persist, authorities are expected to gradually phase out the temporary tax reductions.
The phasing out would eventually restore excise duties to pre-crisis levels, according to Vučić’s remarks.
