Vučić: "Serbia will not allow uncontrolled fuel price hikes"

Serbian President Aleksandar Vučić said that the government is considering releasing state oil reserves to supply domestic oil companies at lower prices, limiting the rise of fuel costs to four or five dinars per liter.

“We still don’t know exactly how we will release these reserves or in what form, because tonight we are meeting to decide,” Vučić said in an interview with RTS. “The price per barrel closed at $99‑something today. With our current excise taxes, the oil price would be 240 dinars, so diesel would cost 246 dinars tomorrow. Currently, it is 203 dinars at the gas stations. That’s 43 dinars more, a 20 percent increase in one day.”

He emphasized that such a jump cannot be allowed as it would fuel inflation. By law, Serbia can reduce excise taxes by only 20 percent, which equals just under 15 dinars.

“From 246 dinars, if you lower excise taxes, it becomes 231 dinars. For oil companies to maintain profitability, prices need to be 231 dinars, or at minimum, as they say, 226 dinars. That is still 23 dinars higher—about 10.5 percent. We cannot allow that. Therefore, tomorrow the increase should be limited to four or five dinars at most, and then we will take action again if necessary,” Vučić said.

He added that his proposal is to release state reserves.

“We created reserves so that we could use them in difficult times. We will release them, supply our oil companies at a lower price, so they can earn their margin, and there will be no fuel shortages—not a single day. People don’t need to worry. There will be no shortage of fuel,” Vučić said.

Vučić noted that consumption has already surged by 60 percent, with some people filling up to five containers at a time.

“We have enough oil for another 93 days, even without producing anything—and we are still producing. We haven’t even tapped the reserves yet. So we will release them at a lower price, reduce excise taxes by 20 percent to protect citizens. Diesel must not exceed 210 dinars, gasoline must not exceed 190‑something, it simply cannot happen. After that, we will continue to adjust prices further, no matter how difficult the global situation is,” he said.

He also stressed the importance of protecting citizens from soaring prices in stores:

“We must ensure that products do not cost two, three, or five times more. We must act quickly with the reserves. We created them for hard times. Here are the reserves at a lower price. People should not worry—there will be no shortages. We have oil for another 93 days and are still producing. We lower excise by 20 percent to protect citizens. Diesel must not exceed 210 dinars. Then we will look to reduce prices further. Amid everything, we have the issue of whether OFAC will approve the license. We will not allow crazy prices. We will protect our citizens. It is our job to stay awake and take care.”

On privatization of companies

Taxi services do not have to be public; they are mostly privately owned. Whether they are partly held by Russians, partly by Serbs, or by someone else, I have no problem with that. These are strategic assets, not owned by the French but by concessionaires. That was the best deal, made three days before the pandemic.

Water, electricity, oil, telecommunications. Data centers will become far more important. Artificial intelligence—that is the new era. At the same time, we are building a stronger army and will continue to do so. We confirm our national pride and protect Serbia. Unlike others, who sold everything from Merkator and Dijamant to foreigners. Dijamant has returned to Serbian hands, and many others will follow. But I don’t think we need to force anyone. We don't want to reverse to socialist mindset.