North Macedonia reduces diesel VAT to mitigate rising fuel prices

The North Macedonian government has implemented a temporary measure to reduce the Value Added Tax (VAT) on diesel from 18% to 10% to mitigate rising fuel costs. This measure, effective from midnight on September 15 until September 28, aims to protect citizens and the economy amid potential oil supply disruptions.

The Regulatory Commission for Energy, Waterworks and Communal Services announced that while diesel prices will decrease by approximately 2 denars per liter to 99 denars, gasoline prices are expected to rise. Eurosuper BS-95 is set to increase by 3.50 denars to 100.50 denars per liter, and Eurosuper BS-98 will rise to 102.50 denars per liter. Other increases include household oil and heating oil.

In response, Venko Filipche, president of the SDSM, criticized the government's measures as “belated and insufficient,” labeling them a form of manipulation. He proposed a more aggressive package, including the complete abolition of fuel excise duties and reducing the VAT from 18% to 5%, arguing that such steps are necessary to provide meaningful relief to the population.