Slovenia seeks EU approval for temporary fuel tax reductions

The European Commission has supported Slovenia's request to temporarily reduce taxes on 95-octane gasoline and diesel below the minimum levels mandated by EU directives. If the proposal is approved by the Council of the European Union, Slovenia could implement these lower tax rates for a six-month period to alleviate the burden of high energy costs on households and businesses caused by geopolitical tensions in the Middle East and supply chain disruptions.

Under the proposal, gasoline taxes could be reduced to as low as 21.95 cents per liter, and diesel to 22.5 cents per liter. While the Commission views this as an appropriate measure for extraordinary circumstances, it warned that the reduction could lead to lower budget revenues and increased demand for fossil fuels.

In a separate regional development, fuel prices in Republika Srpska have seen a decrease of up to 26 fenings per liter. In Banja Luka, diesel prices are reported between 3.62 KM and 3.70 KM per liter. While this provides temporary relief, consumer protection groups note that prices remain high relative to local incomes and that such drops do not always lead to a corresponding decrease in the cost of basic foodstuffs.