Trade minister: Gas prices must decrease

Trade Minister Slobodan Milosavljevic said that rising gas prices must be analyzed in order to maintain general economic stability. “It is time to make an analysis and precisely confirm how much the state is getting and how much it is losing with the policies of very high excise taxes and much higher gas prices in relation to the region,” Milosavljevic told daily Vecernje novosti. Trade minister: Gas prices must decrease He said that this needs to be done as soon as possible, because people are beginning to smuggle gas into Serbia again. Thousands of Serbian citizens cross the border daily into Bosnia and other neighboring countries to fill up their gas tanks. Since the current formula for setting gas prices does not enable prices to decrease, the minister recommended that the formula needs to change. “It is possible to take the stock price of derivatives as the foundation, which is lower, and which is used in some European countries, while in Serbia the fuel price is used. That would decrease retail prices, which would have an effect on the formation of prices for all other products and services,” he said. Milosavljevic added that the wave of price increases in March will be one of the most intensive ones in 2010. “Electric energy, fuel, heating and in some cities, some communal services increased in price, and there was a season increase in the price of fruits and vegetables, and other food products as well…everything got more expensive in one month. But we had that scenario last year as well, and then the market calmed down,” he said. Milosavljevic said that freezing prices could help, since recent experience showed that after every fabricated attempt to keep prices down resulted in increases later.

Trade minister: Gas prices must decrease

He said that this needs to be done as soon as possible, because people are beginning to smuggle gas into Serbia again.

Thousands of Serbian citizens cross the border daily into Bosnia and other neighboring countries to fill up their gas tanks.

Since the current formula for setting gas prices does not enable prices to decrease, the minister recommended that the formula needs to change.

“It is possible to take the stock price of derivatives as the foundation, which is lower, and which is used in some European countries, while in Serbia the fuel price is used. That would decrease retail prices, which would have an effect on the formation of prices for all other products and services,” he said.

Milosavljević added that the wave of price increases in March will be one of the most intensive ones in 2010.

“Electric energy, fuel, heating and in some cities, some communal services increased in price, and there was a season increase in the price of fruits and vegetables, and other food products as well…everything got more expensive in one month. But we had that scenario last year as well, and then the market calmed down,” he said.

Milosavljević said that freezing prices could help, since recent experience showed that after every fabricated attempt to keep prices down resulted in increases later.