Serbian Gas Station Owners Say Subsidized Diesel for Farmers Unfeasible

Private gas station owners in Serbia are unable to comply with a new government regulation allowing them to sell diesel fuel to farmers at a subsidized price of 184 dinars per liter. The regulation, introduced by an amendment to the Decree on Limiting Oil Derivative Prices on July 3, aimed to help farmers who do not have access to state-owned NIS (Naftna industrija Srbije) pumps.

However, owners of private stations state that their purchase price for diesel is around 206 dinars per liter. Selling at the mandated 184 dinars would result in a loss of 22 dinars per liter. Srđan Knežević, owner of the "Knez petrol" chain, told the Beta agency that only the state-owned NIS can afford to sell diesel at such a low price, as private companies would incur substantial losses.

Farmers are reportedly calling private stations, confused about why they cannot purchase the subsidized diesel. Jelena Radun, owner of "Radun Avia" pump, confirmed that farmers are inquiring about the possibility of buying diesel at the lower price but stated it's not feasible due to their higher procurement costs. She noted that there is no specific state program to compensate private businesses for this price difference.

The government's amended decree allows farmers to purchase up to 100 liters of diesel per hectare for a maximum of 100 hectares, provided their agricultural land was registered by January 24, 2026. This right does not apply to state-owned agricultural land, except for leased parcels acquired through public bidding. Farmers who have already utilized their full subsidized fuel allowance under previous regulations are ineligible.