Diesel Up 5.50 Denars While Serbia Cut Its Excise: Same Oil, Two Different Decisions

As of today, drivers are paying more at the pump again. The Energy Regulatory Commission (RKE) has ruled to raise fuel prices, and diesel took the biggest hit - up by a full 5.50 denars, now costing 88 denars a litre.

For petrol the increase is smaller. Eurosuper BS-95 now costs 87 denars, and Eurosuper BS-98 is 89 denars a litre - both up by 1.50 denars. Extra-light household heating oil also rose, now at 86 denars a litre. The average increase, according to RKE, is 3.59 percent compared to the previous price list from 6 July. The reason is familiar: rising crude oil and petroleum product prices on global exchanges, driven by fresh tensions around Iran and the Strait of Hormuz.

But here's the part worth comparing. While fuel is getting pricier here, neighbouring Serbia did the opposite - it decided to further cut excise on petroleum products by another 5 percent, bringing the total cut to 10 percent, to soften the blow of world prices on its citizens. Same oil, same exchange, same crisis - but two entirely different decisions.

And that's the question every driver asks when they see the bill: why is it that when the world price goes up, here it automatically goes up at the pump too, but when there's room to ease things through excise, that room is rarely used? The state has the tools to cushion the blow on citizens - Serbia is showing it in practice. The question isn't whether oil is getting more expensive on the exchanges, but how much of that increase the state knowingly shifts onto the back of the ordinary person, instead of carrying at least part of it itself.