Oil Companies Allowed to Use Euro Diesel Reserves Due to Import Disruptions

Serbia’s Ministry of Mining and Energy has allowed oil companies that submitted requests to temporarily use their operational reserves of Euro diesel in order to ensure a stable supply to the domestic market during a period of disrupted fuel imports.

Minister of Mining and Energy Dubravka Đedović Handanović said that supply challenges had been caused by low river levels in the region, the increasingly complex situation on the global market and a seasonal rise in fuel demand.

Imports of petroleum products by river vessels have currently fallen to just 30 to 40 percent of normal capacity. Oil companies are unable to fully compensate for the missing quantities through rail or road transport, the ministry said in a statement.

The companies have therefore been permitted to use part of the operational reserves that they are legally required to maintain in case of supply disruptions. These stocks belong to the companies themselves and are separate from the state’s strategic petroleum reserves.

Once imports return to normal, the companies will be required to replenish the quantities used within a deadline agreed with the relevant authorities.

The minister also said that the Petroleum Industry of Serbia, NIS, would be allowed, at its request, to make part of its operational reserves available to companies currently seeking larger quantities of fuel from the domestic refinery because of reduced imports.

The measure is intended to prevent disruptions at filling stations and help overcome the temporary difficulties without drawing on state reserves.

In recent days, the authorities also decided to reduce excise duties on petroleum products by 20 percent in order to ease the impact of rising fuel prices on households and businesses.

Energy portal

Latest News