Montenegro currently lacks ready facilities to store mandatory fuel reserves, which are planned to be procured by December this year. The state-owned terminal in Bar, intended for storage, will not be technically ready before the end of 2026 due to necessary reconstruction. As a backup plan, the government intends to store reserves abroad—potentially in terminals located in Italy, Croatia, Slovenia, or Greece—pending formal agreements and host country approvals. These storage contracts are expected to be multi-year, with storage beginning as early as December 2024.
The government’s 2025 Oil Reserves Plan outlines that negotiations with Jugopetrol, the operator of the Bar terminal, will start immediately after plan adoption. The first mandatory reserves, managed by the Hydrocarbon Administration, are expected in December 2024, and storage contracts will cover at least three years.
A second tender for repairing the Bar terminal tanks is currently underway, valued at approximately 1.7 million euros (excluding VAT).
If Jugopetrol cannot provide competitive storage capacity or pricing, reserves will be stored abroad until domestic facilities become available. The Hydrocarbon Administration is working with the Ministry of Energy to establish legal and operational frameworks for overseas storage and to support improved cooperation with regional countries.
Legislation adopted in December 2023 mandates the formation of mandatory fuel reserves, a key requirement for closing Chapter 15 (Energy) in Montenegro’s EU accession process.
Mandatory reserve obligations apply to the Hydrocarbon Administration and any fuel importer bringing in 15,000 tons or more of unleaded gasoline and/or gas oils. Companies Jugopetrol, INA Crna Gora, and Petrol Crna Gora are required to jointly establish reserves in 2024.
The total cost for forming reserves through 2028 is estimated at 44.5 million euros, with 7.5 million euros provided as non-repayable EU aid to address the energy crisis. The remaining funds will come from a surcharge of three euro cents per liter added to retail fuel prices, collected from consumers and businesses since February 10, 2024.
As of July 20, 2024, approximately 5.65 million euros have been collected, averaging over 1.1 million euros monthly. The surcharge amount and allocation are expected to remain unchanged through 2025. It is projected that around 11 million euros will be collected by December 20, 2025.
In 2025, the Hydrocarbon Administration plans to purchase between 14,000 and 19,000 tons of diesel, depending on available funds. If 11 million euros are available, the purchase will be 14,000 tons; if 14 million euros (including EU support) are secured, up to 19,000 tons will be procured. Diesel procurement will exclude excise tax as the fuel will be stored under a deferred excise payment regime.
Diesel deliveries are planned for December 2025, with tenders conducted in cooperation with the Ministry of Finance. Procurement will begin promptly after the plan’s adoption, given legal deadlines under public procurement laws.
Storage costs are estimated at 5 euros per ton per month, with payments only for December 2025 planned.
