Although since the beginning of the year, the prices of crude oil on the world stock exchanges have recorded a decline, this situation is generally not reflected in the retail price of fuel at gas stations in Serbia.
The reason Is the formula by which the price of oil derivatives in Serbia is determined, which is not based on the price of crude oil but depends on the prices of gasoline and diesel on the regional market, writes Danas.
At the end of May and during the first week of June, the prices of “liquid gold” on the world market recorded a decline, and the main reason for this is that the growth of the world’s largest economies, primarily China’s, is slowing down, which is a clear signal that the demand for oil will weaken.
Accordingly, in the first week of this month, the price of a barrel of Brent oil decreased by 1.6 percent to 74.7 dollars, and on June 14, it reached the amount of 72 dollars per barrel. In the meantime, there was an increase in the price of a “Brent” barrel and it currently reaches around 76 dollars.
Regardless of that, it can be concluded with full right that the prices of crude oil are in rapid decline because at the beginning of the year they reached the level of 117 dollars per barrel and now its price, as can be seen from the data presented, is significantly lower.
On the other hand, although the price of crude oil is falling, it does not automatically mean that there will be a drop in fuel prices at pumps in Serbia. Thus, for example, on June 2, retail fuel prices remained unchanged compared to the period from the end of May.
Seven days later Eurodiesel reached the maximum price of 184 dinars per liter, while the price of Europremium BMB gasoline was 178 dinars per liter. In other words, diesel and gasoline went up by two dinars each.
As of last Friday at 3 p.m., diesel costs a maximum of 184 dinars per liter, and the price of Europremium BMB gasoline is 177 dinars per liter. This means that the price of Eurodiesel remained the same as the previous week, while gasoline became cheaper by one dinar.
In order to combat the negative effects of the global energy crisis, the authorities in Serbia limit the maximum price of fuel at gas stations when it comes to Eurodiesel and Europremium BMB gasoline.
What is very confusing for drivers is the fact that the reduction in the price of oil on the world stock exchanges does not mean that the price of fuel at gas stations in Serbia will be corrected. Lower retail fuel prices can only occur in the case of a drop in prices on the reference regional stock market, according to which the price of gasoline and diesel for drivers at pumps in our country is formed.
In this way, fuel prices in Serbia are practically “inflated” because they are not formed based on the price of crude oil, but are a parameter of the price quotations (the last prices at which they are traded) of oil derivatives on the stock exchange in Genoa in the port of Lavera.
Transportation costs are added to the prices of the derivatives offered in Genoa, for gasoline 45 dollars per ton, and for Eurodiesel 64 dollars per ton, then the exchange rate of the dollar against the dinar. All this significantly increases the price of gasoline in Serbia, which is therefore more expensive than in, for example, Hungary, where the price is based on the price of crude oil on the stock exchange.
At one time, the government in Serbia justified this way of determining retail fuel prices by saying “that oil companies operating in our country in crisis conditions, when the maximum price of gasoline and diesel is limited, should be enabled to make a profit”.
The expert public emphasizes that the high price of fuel in Serbia is also affected by large state appropriations through excise taxes and other duties, because considering that the activities of the industry are at a low level, taxation is in fact the only safe way to fill the budget.
The General Secretary of the Association of Oil Companies of Serbia, Tomislav Mićović, tells Danas that the retail prices of gasoline and diesel directly depend on the wholesale prices, and they are not only affected by the price of crude oil.
In determining the wholesale prices of oil derivatives, in addition to the price of crude oil, a number of other factors are of great importance, such as reference quotations of oil derivatives, the exchange rate of the dinar against the dollar, transport costs, insurance costs, the international situation and others.
When comparing the trends of retail prices in different countries, it should be borne in mind that the policy of taxation of energy sources, including motor fuels, differs greatly from country to country. This difference has been particularly pronounced in the last two years, when countries introduced, changed and abolished various measures to mitigate the effects of the global energy crisis. So the key difference in the retail price of fuel is created by the states by determining not only the tax burden, but the total duties that are paid in fuel traffic – concludes Mićović.
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