Risteski: Prices remain under control, while fuel in Macedonia is the cheapest in the region

Deputy Minister of Economy and Labour Marjan Risteski said that inflation and product prices in the country are currently under control, meaning he sees no need to take new measures.

According to him, the Government’s reduction of excise duties and VAT on petroleum products has helped keep fuel prices lower than in neighbouring countries in the region.

Risteski said that any future measure should be based on detailed analyses in order to protect citizens’ purchasing power and standard of living.

“Our aim is for petroleum products to continue to have lower prices than in neighbouring countries, without creating an impetus that would cause a runaway increase in the prices of other products, particularly food. If the need for intervention arises, the legal framework allows us to implement such measures in the future, either through a proposal by the Ministry of Economy and Labour or through a proposal by the Government, just as we have acted so far to protect citizens’ standard of living,” Risteski said.

He added that the measures must be carefully reviewed and drafted so that they do not later lead to higher inflation or damage to the fragile Macedonian economy. According to him, the Government will not allow citizens’ standard of living and purchasing power to be undermined, as happened in the recent past during similar global economic crises, when the country faced double-digit inflation, runaway price increases and the complete destruction of living standards.

With the reduction of excise duties and VAT, Macedonia, according to Risteski, has managed to offer petroleum products at the lowest prices in the region. He noted that citizens from neighbouring countries are also taking advantage of this situation.

Risteski also said that the prices of basic food products for an average Macedonian family are among the lowest in the region. He acknowledged that this is not enough, but said that, despite the war-related crisis, the Government will continue to aim to keep fuel and basic food prices at the lowest regional level if the need for further measures arises.

Analyses by the State Market Inspectorate, conducted on more than 700 products, did not identify any significant price increases. On the contrary, decreases were recorded in seasonal agricultural products.

According to the deputy minister, the minimal increase observed is linked to higher transport costs caused by rising energy and petroleum product prices, as well as increases in the prices of imported raw materials and materials. He explained that 90% of these materials come from imports. The data also show decreases in the prices of seasonal agricultural products and fruit.

For this reason, Risteski said that no special measures are currently needed, apart from the reduction in excise duties and the previous measure to reduce VAT on petroleum products. The aim, he said, is for prices to remain low and affordable for citizens, while protecting their standard of living and purchasing power.

The deputy minister announced that after the recess, amendments to the Law on Unfair Trading Practices, prepared in cooperation with the Commission for the Protection of Competition, would be sent to members of parliament. Other institutions directly or indirectly linked to the law will also be included in the process, while opinions will also be sought from the chambers of commerce.

The amendments aim to stabilise prices in the long term and prevent runaway inflation. One of the main points is a drastic increase in fines: from the current maximum of 20,000 euros, they are expected to increase tenfold.

The proposals also provide for the clarification of contracts through several articles of the law, with the aim of preventing manipulation, particularly by traders. A fine will also be established for suppliers who accept unfair trading practices. Risteski said that the period before New Year’s is suitable for adopting these amendments.