Government Decided to Temporarily Offset Expected Fuel Price Increase Through Excise Tax Adjustment

Based on a detailed analysis by the Ministry of Finance regarding trends in international oil markets and their impact on citizens' living standards and the business environment in our country, the government has decided to temporarily offset the expected rise in retail fuel prices through excise tax adjustments. Through decisive intervention, the government will enable retail fuel prices to remain lower than current levels, so citizens will pay 1 euro and 65 cents per liter of diesel instead of the expected 1 euro and 81 cents, while the price of gasoline will remain unchanged, instead of the anticipated increase of 7 to 8 cents per liter. Additionally, considering that during the tourist season a significant portion of fuel in Montenegro is purchased by foreign tourists and transit travelers, taxpayers' funds must be handled with special care in the upcoming period. This means that during the season, an environment should not be created where fuel is used to subsidize visitors' consumption instead of financing healthcare, education, pensions, capital investments, and other public needs. Responsible fiscal policy entails that government measures are implemented when they benefit citizens and the domestic economy the most, rather than when their dominant effect is to favor seasonal consumption by foreign visitors. The government will continue to monitor market trends and, in accordance with fiscal capabilities, timely implement measures that protect citizens' interests and contribute to economic stability.