FBiH backs plan to suspend oil import duties for six months to bolster Bosnia energy security

The Federation of Bosnia and Herzegovina (FBiH) has approved a proposal to temporarily remove customs duties on crude oil and petroleum product imports, a move designed to strengthen energy security amid ongoing volatility in global fuel markets. For investors and market participants, the policy matters because it directly targets the cost and availability of alternative supply channels—factors that can influence pricing stability and continuity of supply.

Duty-free access limited to non-preferential suppliers

Under the endorsed plan, the measure would apply specifically to shipments from non-preferential markets—countries outside the EU, CEFTA, and those without special trade agreements with Bosnia and Herzegovina. If implemented, the duty suspension would remain in force for 180 days.

State-level tariff changes expected

At the state level, authorities are expected to instruct the Ministry of Foreign Trade and Economic Relations to revise the national customs tariff system accordingly. The proposed changes would reduce import duties on oil and petroleum products from third countries to zero during the six-month period, lowering entry barriers for alternative suppliers.

Diversification, competition and pricing stability

Officials say removing tariffs and related charges would expand the pool of potential suppliers. That, in turn, is intended to diversify sourcing away from dominant import routes and strengthen competition across the fuel supply chain. The government expects this could support more stable pricing and improve market efficiency.

Preparedness for external shocks

The initiative is also framed as a preventive step to improve resilience to external shocks. By enabling quicker access to alternative supply channels ahead of time, authorities believe Bosnia and Herzegovina would be better positioned to respond to sudden disruptions—such as shortages or price spikes—while maintaining continuity in energy availability.

Volatile global prices cited as key motivation

Government representatives emphasized that the approach is meant to be activated immediately when conditions deteriorate, avoiding delays tied to administrative procedures or additional costs. They pointed to price fluctuations observed in March 2026 as evidence of how unpredictable current conditions are, reinforcing the case for timely policy action aimed at safeguarding supply stability and protecting the domestic economy.