In Montenegro, diesel prices have risen by €0.03 per litre, while retail petrol prices remain stable. This increase is significant for various sectors as diesel is the primary fuel for freight operators, construction firms, agricultural producers, public transport providers, and many services within the tourism industry.
While the rise in price may seem small for individual consumers, frequent adjustments in fuel prices can substantially impact businesses that operate extensive vehicle fleets. The fragmented logistics market in Montenegro, coupled with a heavy reliance on road transport, complicates the ability of companies to absorb these higher costs without transferring some of the burden to their customers.
This price adjustment occurs amid increasing political pressure on the government to consider lowering the value-added tax on fuel. Proponents of a tax cut argue that it could help alleviate transport costs and mitigate inflation. However, such a reduction could lead to significant fiscal implications since fuel duties and VAT are crucial revenue sources for the national budget.
The sensitivity of this increase is heightened by Montenegro’s reliance on imports for most consumer and intermediate goods. Higher diesel prices directly influence the costs associated with transporting food, construction materials, and other merchandise from ports and border crossings to domestic markets.
The immediate inflationary impact of this €0.03 increase is expected to be limited. However, its broader significance lies in its cumulative effect on an economy already facing high costs associated with imported goods, road transport, and seasonal distribution along the coast.
