Government remains silent on new intervention after fuel price hike

For the time being, there has been no new decision regarding the fuel price increase. Although Energy Minister Sanja Bozhinovska indicated yesterday that the cabinet would consider the possibility of an additional intervention today, no official announcement on concrete steps has been issued so far.

The executive branch did not give a clear answer as to whether new alternatives to mitigate the increase had been analyzed at the meeting. The government office merely reiterated that the reduced VAT rate for fuels, from 18 to 10 percent, remains in effect.

“The government is closely and continuously monitoring developments in the derivatives market and will intervene to protect the interests of citizens and the economy,” the brief official statement said.

Despite assurances that the situation is being monitored, the new price is already weighing on households and businesses. As of today, a liter of diesel is being sold for 104.5 denars. Entrepreneurs have proposed that fuel vouchers also be included in the next package of measures.

The Federation of Trade Unions (LSM) warns that expensive fuel will not be felt only at the pump, but could also drive up the prices of food products and other goods. Union representative Ivan Pesevski stressed that this increase in costs makes the demand to review the minimum wage even more urgent.

In the span of just two months, the price of diesel has risen by more than ten denars per liter. So far, the executive branch has intervened by reducing excise duties and VAT, and earlier reached an agreement on discounts with the company OKTA, which is not currently in effect. Minister Bozhinovska said a day earlier that there was still room for additional measures, but added that any new step would have to be carefully weighed to assess its impact on the state budget.