Following last Friday’s escalation in the Middle East between Israel and Iran, global oil prices surged sharply due to fears of supply disruption. However, markets stabilized earlier this week, with no significant fluctuations, according to Draško Striković, Secretary General of Montenegro’s Association of Oil Companies.
Striković warned that if the conflict expands and more countries become involved, there could be a significant rise in oil and fuel prices. For now, Montenegro may see a slight increase in fuel prices—about two to three cents per liter of gasoline and diesel—during the next pricing cycle, unless tensions ease or remain unchanged.
Last Friday, oil prices jumped by more than 12%, reaching their highest levels since late January, triggered by Israel’s unexpected attack on Iran. On Monday, prices slightly declined by 0.3%, signaling some market relief.
As of Tuesday, all fuel types in Montenegro saw price increases of one to two cents. Eurosuper 95 and 98 now cost €1.43 and €1.46 per liter, respectively; eurodiesel is priced at €1.30, and heating oil rose to €1.24.
Striković noted that despite current geopolitical instability, oil prices remain relatively low compared to past years. Global supply is currently strong, and prices are about 30% lower than in 2022 during the start of the Russia-Ukraine war. However, Iran’s role in global oil production—10 to 12%—means any damage to its refineries could affect long-term supply and prices.
If Iranian oil facilities are destroyed, major producers like Saudi Arabia and Russia could compensate, but this would require coordinated decisions.
Montenegro has also introduced a strategic oil reserve mechanism. A fee of three cents per liter was added to fuel prices in February 2024 to fund these reserves. According to the Ministry of Energy and Mining, this measure aligns with EU practices and aims to ensure energy security. By 2028, Montenegro expects to have fully established its mandatory reserves, composed primarily of eurodiesel and unleaded gasoline.
