Preferential VAT on fuel ends Monday; government must decide

On Monday (September 28) the preferential VAT period for fuel in North Macedonia ends, and by then the government must decide whether the measure will continue for another two weeks, Faktor reports.

The decision comes at a moment when oil markets are fluctuating under pressure from the Middle East crisis. On the last trading day, Brent crude cost around $105 a barrel — about $2 more than last Friday, when the price was around $103.

Across Europe, alarm is growing over fuel prices. New records have been registered in several countries, and there is fear that a further escalation of the Middle East crisis could bring a new wave of price hikes.

Meanwhile, Washington and Tehran have expressed readiness for de-escalation. Negotiators talking in New York see the possibility of a phased agreement, which would include the reopening of the Strait of Hormuz by Iran and the easing of the economic blockade by the United States.

Data shows that fuel in several European countries is already sold at over 2 euros per liter. North Macedonia ranks among the countries with the cheapest price — on average around 1.7 euros per liter — while the most expensive is Denmark, at over 2.5 euros per liter. In the region, the price in Serbia and Slovenia exceeds 2 euros, in Greece it is around 2.2, and in Croatia around 1.9 euros per liter.

For gasoline, the cheapest in Europe is found in Turkey, under 1.5 euros per liter. North Macedonia, at around 1.6 euros, is among the countries with the cheapest gasoline on the continent, while the most expensive is in the Netherlands, around 2.5 euros per liter.

Faced with rising prices, several European states are taking relief measures — from tax cuts and fuel vouchers to energy subsidies for vulnerable categories.

In North Macedonia, reduced VAT on fuel is currently applied, as well as a 4-denar excise cut for all types of fuel.

The prime minister has warned several times that, if the situation requires it, the government will consider additional measures to soften the price blow and protect citizens’ living standards.