Montenegro fuel industry operational changes

The fuel retail sector in Montenegro is undergoing several operational and regulatory shifts. Initially, certain gas stations introduced self-service fueling models to reduce labor costs, as government-regulated retail prices prevent companies from adjusting to market fluctuations. This move faced local resistance from drivers concerned about decreasing service levels.

Concurrently, the Ministry of Energy and Mining has scheduled the full implementation of a fuel marking system for November 9, following a testing phase that began on October 19. This implementation was delayed due to safety concerns raised by importers and traders regarding the process of adding nano-particle powder to fuel tanks at ports and border crossings. While the Ministry of Internal Affairs stated the process falls outside its jurisdiction, the government is reviewing the regulatory and economic impacts. The costs associated with this marking system are expected to be borne by importers, potentially increasing retail fuel prices by approximately two to three cents per liter.

Political pressure regarding fuel costs is also increasing. Boris Mugoša, a Member of Parliament for the European Alliance, has criticized the government for failing to implement legal mechanisms to lower prices. Mugoša argued that a 50 percent reduction in excise duties on both gasoline and diesel would significantly lower costs per liter. He noted that while a 20 percent reduction in diesel excise duties has been implemented, no such reduction has been applied to gasoline. Mugoša warned that rising fuel costs are driving inflation, noting that Montenegro’s annual inflation in September was higher than in 90 percent of Eurozone and EU countries.