Montenegro’s Civic Movement URA has proposed reducing both fuel excise duties and value-added tax (VAT) for up to six months, as deputy leader Blažo Rađenović said the government lacks a strategic response to rising fuel prices. The proposal is part of URA’s “Better Standard” economic measures package and would apply while prices remain high and global energy markets are disrupted. Rađenović said the government was not protecting living standards through responsible, strategic policy.
Montenegrins have lower average salaries and pay more for petrol than people in Croatia and Slovenia, the comparison cited in support of the proposal. State measures in Croatia and Slovenia have lowered petrol prices by about 14 cents and 20 cents per litre, respectively, while consumers in Montenegro have not felt significant relief. The contrast comes as households face higher costs for fuel and other basic needs.
Excise changes and household costs
Since 22 September, the government has repeatedly changed the percentage reduction in fuel excise duties. The cut on petrol moved from 30% to 25%, then to 20% and 10%, before it was abolished. For diesel, the reductions changed from 40% to 25%, 15% and 10%, before returning to 20%.
Those week-to-week adjustments left consumers without predictability about prices for the following week. Rađenović described the approach as “neither predictable nor sustainable”. He called for a clear and predictable plan, rather than short-term changes from one Monday to the next or between one price calculation and another.
The cost of filling a 60-litre tank was 78.60 euros in October last year and is now 118.80 euros, an increase of 40.20 euros. Living standards depend not only on salary levels but also on the money left after excise duties and VAT are paid, Rađenović said. He added that a growing share of income is going to fuel, food, transport and other basic costs.
“The state must take on part of the crisis burden, rather than leave citizens to cope with price increases alone,” Rađenović said. URA’s proposal would reduce both excise duties and VAT on fuel for a period of up to six months, while high prices and global energy-market disruptions continue. The party says the measures should form part of a clear plan, instead of repeated short-term changes.
