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Diesel at 99.50 Denars: Up 42.8 Percent Here, Half That Next Door

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Diesel at 99.50 Denars: Up 42.8 Percent Here, Half That Next Door

Half a denar. That is all that separates diesel from a three-figure price. Under the Energy Regulatory Commission's new decision, a litre of diesel sells for 99.50 denars - the most expensive in the last three and a half years.

The all-time high was recorded four years ago, when a litre reached 111 denars. So we are not at the peak yet. But we are covering the road towards it faster than anyone around us.

The figure that sets us apart from the region

According to analyses covering late February to late July this year, diesel here rose by 42.8 percent - from 69.00 to 98.50 denars. That is a comfortable first place on the list.

For comparison, over the same period: Kosovo saw a rise of 21.3 percent, Albania 20.3, Montenegro 19.7, Greece 18.7, and Serbia 15 percent. In the large European economies such as Germany, France and Switzerland, the jump ranged between 10 and 12 percent.

Twice the increase of our neighbours. Nearly four times the Western European one. The same region, the same oil market, the same global prices - and an entirely different result at the pump.

DUI goes closer still in its statement: in less than a month the price jumped from 82.5 to 99.5 denars, which is 17 denars or 20.6 percent. They claim that is roughly four times the average increase in EU countries over the same period.

Why diesel and not petrol

Petrol prices fell by two denars at the same time - EUROSUPER 95 now costs 91 denars, and EUROSUPER 98 sells for 93 denars. The Regulatory Commission points out that the average reduction in oil derivative prices is 1.24 percent.

An average reduction of 1.24 percent, and diesel at 99.50. That is a perfect illustration of why averages are not enough. Diesel is not a fuel like the others - it is the basic energy source for freight transport, public transport, construction machinery and farm equipment.

Every lorry carrying goods to the shops costs more today. Every bus. Every tractor. That is not an abstraction - it is a chain that ends at the price on the shelf, and every market analysis acknowledges that mechanism.

On top of that, extra-light household heating oil is going up by 0.50 denars and will cost 98.50 denars per litre. That is heating fuel, and its price becomes relevant in a few months.

What the state is doing

The government announced a new price analysis for this week, after which it will decide on possibly introducing measures. DUI's message is that other countries intervene by cutting excise duties and offering subsidies, while here the price is closing in on 100 denars.

The analysis will show what every analysis shows - that the price is high. The question the analysis will not answer is why our percentage increase is double that of Serbia, Albania and Kosovo, who buy oil on the same global market. The gap between 42.8 and 15 percent is not explained by Brent. It is explained by something decided right here.