Sharp increases in fuel prices driven by geopolitical tensions in the Middle East have led Montenegrin authorities to cancel a planned diesel procurement for the country’s strategic reserves. The tender, valued at around 11 million euros for 16,500 metric tons of EN 590 diesel (approximately 19.6 million liters), was intended to bolster the nation’s mandatory petroleum reserves.
The Administration for Hydrocarbons cited rapid price growth on the Mediterranean fuel market, which significantly reduced the quantity of diesel that could be acquired within the estimated budget. This marks the second attempt to secure diesel supplies, after a previous tender was withdrawn when the only offer, submitted by Jugopetrol, was deemed non-compliant.
Fuel prices in Montenegro have risen notably in recent weeks, with petrol up by 7 eurocents per liter and diesel by 16 eurocents. Despite this increase, diesel remains cheaper than in Serbia, Croatia, Slovenia, and Albania, though it is more expensive than in Bosnia and Herzegovina and North Macedonia.
Government officials emphasized that the country’s fuel supply remains stable, with no shortages or immediate threats to market stability. Montenegro also maintains strategic petroleum reserves of approximately 44,260 metric tons, providing additional protection against supply disruptions.
Smaller fuel companies, particularly those importing by road without storage infrastructure, are facing challenges as market prices have recently exceeded regulated retail levels, impacting profitability. Fuel distributors have suggested potential regulatory adjustments, including revising the 14-day retail price calculation period and possibly reducing excise duties. Finance Minister Novica Vukovic stated that a reduction in fuel excise taxes has not yet been formally proposed but remains under consideration depending on evolving energy market conditions.
