In a similar vein to many national European energy policies, Serbia’s gas prices will remain frozen until May 2024 following a November 1st rate increase. The government will cover the difference for manufacturers and importers from the national budget in case of market changes, assuaging the population’s concerns about a new transit tax that Bulgaria is imposing on Russian gas, increasing its cost by 20%.
Serbia’s move reflects that of the European Union – to which it is a candidate. The Commission has requested its 27 member states to reduce gas demand by 15% this winter, with mandatory cuts possible. The EU is also discussing a gas price cap, but no details have been agreed upon. So far the largest outlays have been in Poland, where Prime Minister Mateusz Morawiecki announced measures to reduce energy prices costing $6 billion. In Germany, a €200bn „defensive shield”, including a gas price brake and a cut in sales tax for the fuel, to protect companies and households from the impact of soaring energy prices.
The regulation applies exclusively to natural gas quantities for Serbian consumption. Belgrade has also increased retail gas prices by 10%, bringing gas costs to 5.02 dinars per kilowatt hour with taxes and fees. The regulation is part of Serbia’s agreement with the International Monetary Fund for a loan.
CENTRAL EASTERN EUROPE NEWS
Serbia Freezes Gas Prices
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