Foreign vertically integrated groups dominate Montenegro’s fuel market, leaving domestic firms with limited room to grow

Montenegro’s fuel sector may look “liberalised” on paper, but recent financial figures point to a far more concentrated reality—one that can shape pricing outcomes and limit how much room smaller local distributors have to expand.

According to an analysis carried by local media, Montenegro’s fuel market has effectively come under the control of large foreign-owned companies. The central worry for domestic operators is that they are increasingly pushed to the margins of the market rather than competing on equal footing.

Where the money sits: revenue concentration

The report cites financial data showing that five major foreign players—Jugopetrol (Greece), INA (Croatia), Petrol (Slovenia), Hifa Oil (Bosnia and Herzegovina), and Lukoil (Russia)—generate around €509 million in revenues. With the overall fuel market estimated at roughly €582 million, this implies these companies control approximately 87% of the fuel market.

By contrast, domestic businesses are described as holding only a marginal portion. The remaining 13% is fragmented across smaller local distributors, which limits their ability to compete using scale advantages, financing capacity, or procurement terms.

Liberalisation versus dominance in practice

The analysis attributes this pattern to a market structure where dominance persists despite formal liberalisation. It describes vertically integrated systems that concentrate critical functions across the value chain—particularly import logistics, storage infrastructure, and retail distribution.

With key parts of the supply chain controlled by a small number of groups, dominant companies can exercise significant leverage over both pricing and access to product flows. Observers quoted in the analysis also argue that barriers to entry remain high for new entrants or smaller competitors.

“System design” makes competition harder

A recurring theme in the findings is that competition is constrained not only by company size but by system design. In practical terms, positioning depends on whether firms can access storage capacity, import channels, and wholesale supply contracts.

This framework leaves domestic firms with difficulty expanding beyond niche or regional operations. Even where smaller operators exist, their fragmented footprint reduces their negotiating power compared with larger vertically integrated networks.

Why it matters beyond fuel stations

The report links concentration in fuel supply to wider economic effects because fuel pricing influences multiple sectors. It points specifically to spillovers into transport, logistics, tourism, and inflation dynamics.

The analysis notes that rising fuel prices in recent weeks—tied to global oil volatility—have heightened sensitivity around how Montenegro’s supply structure translates into consumer-facing prices.

Policy pressure grows as concentration deepens risk

Calls for policy intervention are intensifying. Analysts argue that without targeted measures—such as improved access to infrastructure, financing support, or regulatory adjustments—domestic fuel companies risk gradual exit from the market, potentially pushing concentration even higher.

The situation is also presented as part of a broader regional pattern across smaller Balkan markets: cross-border energy companies tend to dominate thanks to integrated supply chains and stronger balance sheets. Montenegro’s case is highlighted as notable because concentration levels appear large relative to total market size, meaning a handful of operators can materially influence availability and pricing conditions.