Sanja Bozhinovska: Government will take all measures if fuel prices escalate

Sanja Bozhinovska, the Minister of Energy, Mining and Mineral Resources, said today that the Government of North Macedonia will take all necessary measures to shield citizens if fuel prices continue to escalate.

Measures under review

Answering reporters, Bozhinovska emphasized that authorities are closely monitoring developments and that recent price rises are driven by global factors and armed conflicts beyond the state's control. She noted that a reduction of value added tax (VAT) for diesel from 18 to 10 percent is already in force as a mitigating step.

On the possibility of further fiscal relief, the minister said: "As you know, there may be other reductions. That exists as a measure, the Ministry of Finance prepares fiscal measures and brings them together to the Government." She added that the Cabinet will review the situation at its upcoming session on Tuesday and discuss potential next steps.

Bozhinovska also clarified that there are currently no new negotiations with the Okta oil company on an additional discount, but that the option remains open should the crisis deepen: "We have not started, however if the situation escalates further, we will take all measures to mitigate the risk to citizens."

She reminded that since the start of the crisis in March the authorities implemented several interventions — including adjustments to excise duties, the VAT cut and an agreement on discounts — aimed primarily at protecting household living standards.

The Government decided on 13 September to cut the VAT rate on diesel from 18 to 10 percent. According to the government press service, the measure is intended to soften the price shock for consumers and businesses amid risks of supply disruptions to oil and oil derivatives; it is valid until 28 September.

Photo: press material from the event