No cuts in oil derivatives excise

The Ministry of Finance has approved the proposal of the Ministry of Mining and Energy to increase fuel prices by 12.48% on the average. An analysis of the impact that lower excise on oil derivatives would have on the republic budget and inflation, conducted by the Ministry of Finance, showed it would be impossible to reduce excise duties at this moment, because it would affect adversely budget revenues, while contributing just slightly to containing inflation.

The Ministry of Finance has approved the proposal

of the Ministry of Mining and Energy to increase fuel prices by 12.48% on the

average. An analysis of the impact that lower excise on oil derivatives would

have on the republic budget and inflation, conducted by the Ministry of

Finance, showed it would be impossible to reduce excise duties at this moment,

because it would affect adversely budget revenues, while contributing just

slightly to containing inflation.

A comparative analysis of fiscal burdens on diesel fuel and gasoline in 10

neighboring countries showed that fiscal levies on diesel fuel and gas in

Serbia are among the lowest in the region. 

Impact of lower oil

derivatives excise on the republic budget and inflation

Excise cut in dinars

Reduction of budget inflow by the end of the year

by 6 dinars

RSD9.912bn

by 3 dinars

RSD4.956bn

by 2 dinars

RSD3.304bn

by 1 dinar

RSD1.652bn

 

Changes in oil derivatives prices

Impact on inflation

Proposed

oil derivatives price rise

0.68%

Excise lower by:

 

1 dinar

0.57%

2 dinar

0.47%

3 dinar

0.37%

6 dinar

0.06%

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