New decree on derivatives in works

Energy Minister Petar Skundric said that a new decree on the price of fuel derivatives would be passed by the end of the month. However, he said that the prices in the end would depend on the Finance Ministry. New decree on derivatives in works Skundric said that the Energy Ministry would, along with the demand for changes to excise taxes, pass a decree by the end of the month on the price of fuel derivatives. However, it would depend on the Finance Ministry as far as whether or not gas prices would decrease. “The proposal is to balance the prices of all derivatives in order to not show any favoritism for one type of derivative over the other, and for prices on the Serbian market to be closer to the prices in the region. The final work on changes to excise policies would be made by the Finance Ministry,” Skundric told daily Politika. He said that he expects the new decree to be completed by the end of the month at the latest. “The expert services in the ministry have been working for a long time on various models of the decree. Whatever the solution is in the end, it would have to contain three elements—the price of fuel on the world market, the relation between the dollar and dinar, and the expenses of producing derivatives,” Skundric told daily Politika. He said that an important element of the decree would be the protection of domestic production until it becomes competitive in the region. “The strategic interest of the state is to have production of derivatives on its own territory and we will not give up on that. The majority partners in NIS have started fulfilling their obligations through the reconstruction of refineries in which more than EUR 700mn must be invested. I believe that once the investment cycle up to 2012 is finished, NIS will be able to take a leadership position in the region,” Skundric said.

New decree on derivatives in works

Škundrić said that the Energy Ministry would, along with the demand for changes to excise taxes, pass a decree by the end of the month on the price of fuel derivatives.

However, it would depend on the Finance Ministry as far as whether or not gas prices would decrease.

“The proposal is to balance the prices of all derivatives in order to not show any favoritism for one type of derivative over the other, and for prices on the Serbian market to be closer to the prices in the region. The final work on changes to excise policies would be made by the Finance Ministry,” Škundrić told daily Politika.

He said that he expects the new decree to be completed by the end of the month at the latest.

“The expert services in the ministry have been working for a long time on various models of the decree. Whatever the solution is in the end, it would have to contain three elements—the price of fuel on the world market, the relation between the dollar and dinar, and the expenses of producing derivatives,” Škundrić told daily Politika.

He said that an important element of the decree would be the protection of domestic production until it becomes competitive in the region.

“The strategic interest of the state is to have production of derivatives on its own territory and we will not give up on that. The majority partners in NIS have started fulfilling their obligations through the reconstruction of refineries in which more than EUR 700mn must be invested. I believe that once the investment cycle up to 2012 is finished, NIS will be able to take a leadership position in the region,” Škundrić said.