Fuel prices are dropping from next week, and the government is announcing a new package of measures for food prices too. Petrol could fall by 1.5 denars per litre, diesel by 2.5 denars. Sounds good — until you put it against months of climbing prices.

Prime Minister Mickoski announced that the VAT reduction from 18 to 10 percent will continue and that excise policy will be adjusted. Diesel excise taxes are being cut by 4 denars, petrol by 2. The government insists the budget is stable and there are sufficient funds for the measures.

Food: next in line?

Interventions are also being prepared for food products — possible reduction or full abolition of VAT on certain food categories. A decision could come as early as Tuesday. The state market inspectorate has checked over 800 retail locations, with the report forwarded to the Ministry of Economy.

The opposition is sharp: the measures are overdue and have no significant impact on real living standards. And the citizens? They have been feeling the squeeze for months — pricier food, fuel and basic goods — while global oil sits under 102 dollars a barrel. Will 2.5 denars off a litre of diesel make any real difference when global pressure is only just beginning?