The Serbian government has decided to impose a fuel price cap to curb inflation.
At a meeting of the Government Council it was estimated that the recent rise in prices of goods and services is due to the rapid rise in prices for fossil fuels. Thus, a ceiling was set on the selling price of fuel. Specifically, the maximum selling price of unleaded gasoline is set at 171 dinars (1.4 euros) while the price of diesel at 179 dinars (1.5 euros). This decision is interpreted as an attempt by the government to calm down, in view of the elections on April 3, the social reactions caused by the price increases.
Rises in fuel and fertilizer prices have already begun to provoke reactions. Yesterday, farmers used tractors and agricultural machinery to block highways across Serbia, calling for immediate state support measures to cover part of the damage they have suffered as a result of fuel and fertilizer price increases.
Inflation of 7.9% was recorded in Serbia in 2021, with the highest increases in fuel (22.6%) and foodstuffs (12.7%). Unlike most European countries in Serbia, there was no increase in the price of electricity as its production is based on the use of lignite.
Source: AMPE
Source: Capital
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