Serbia trims fuel excise tax relief to 20% through May 31 as global oil volatility persists

Serbia has revised its temporary fuel excise tax relief as authorities seek to limit volatility in the domestic fuel market amid higher global crude oil prices and ongoing geopolitical tensions in the Middle East. The latest policy change matters for consumers and refiners alike because it directly affects the price pass-through of international petroleum costs into local pump prices.

Government reduces excise tax relief

At its latest session, the Serbian Government approved a new decision lowering the level of excise tax relief on petroleum products from 25% to 20%. The updated measure applies to leaded gasoline, unleaded gasoline, and diesel fuel, and will remain in effect until 31 May.

Earlier interventions since February

The reduction comes after a series of short-term interventions. On 13 March, authorities introduced a 20% reduction in excise duties following sharp fuel price increases linked to the escalation of conflict involving Iran at the end of February. Relief was then expanded to 25% on 10 April before being partially reduced again under the most recent government decision.

Rationale: higher producer prices tied to crude

The Government said the measure was adopted in response to higher producer prices for petroleum products, which it attributed to sustained increases in international crude oil prices. Even with some signs of stabilization in global markets, domestic pricing has not fully normalized.

Domestic prices still above pre-crisis levels

According to the Government’s statement, domestic fuel prices remain significantly above pre-crisis levels. Since late February, diesel prices have risen by €0.20 per liter, while petrol prices are up by €0.09 per liter over the same period.

By narrowing the relief while keeping it in place through May 31, Serbia is effectively recalibrating how much fiscal support it provides against imported cost pressures—an approach that may influence near-term affordability and demand as investors watch how quickly global oil moves translate into local price trends.