Serbian government orders cheaper diesel for farmers, raising fuel prices for others

The Serbian government has implemented a new decree that establishes a preferential price for Euro diesel specifically for registered farm households. This move aims to support agricultural producers by allowing them to purchase 100 liters of diesel per hectare, capped at 100 hectares, at a lower rate of 1.57 Euro per liter from all fuel retailers.

However, this measure is accompanied by a broader increase in fuel prices for the general public. The price for all other diesel consumers has been raised to 1.67 Euro per liter. Additionally, the price for BMB 95 gasoline has seen a significant jump to 1.87 Euro per liter, impacting a wider range of consumers and potentially increasing transportation costs across various sectors.

This dual approach highlights the government's effort to balance support for a key economic sector, agriculture, with the need to manage broader energy market dynamics and potentially generate revenue. The decree's specifics, focusing on registered farm households and a per-hectare limit, suggest a targeted subsidy rather than a blanket price reduction, indicating a strategic allocation of resources.