The government of Bosnia’s Serb Republic has extended its fuel subsidy until October 15, maintaining support for consumers and businesses as crude oil prices remain close to $100 a barrel.
The programme provides a subsidy of €0.05 per litre. Its fiscal cost has increased as participation expanded, with monthly reimbursements rising from about €900,000 in the first month to approximately €1.5 million.
Total payments under the measure have reached around €7 million.
The extension offers temporary protection against higher transport and operating costs, but it also increases pressure on the entity’s public finances if elevated oil prices persist. Fuel support can soften the immediate inflationary effect for households and companies, although it transfers part of the price shock to the government budget.
The government separately approved a guarantee for new borrowing by the integrated coal mine and thermal power plant operator RiTE. The loan will finance purchases of mining dump trucks, although its value was not disclosed.
The two decisions underline the growing cost of maintaining energy affordability and supporting domestic coal production at the same time. For the government, the immediate political benefit is clear; the unresolved question is how long the budget can absorb the difference if global oil prices remain high.
