Diesel VAT cut expires on September 28, 2026
The reduced 10% VAT on diesel ends today; the regulator will set maximum fuel prices for the coming week.
The temporary cut in value-added tax (VAT) on diesel from 18% to 10% expires on September 28, 2026. The reduced rate began on September 15, 2026 as a short-term measure to ease price pressure on households, and the Government of North Macedonia must now decide whether to extend the preferential VAT for another two weeks.
Also on September 28, the Regulatory Commission for Energy is due to set maximum fuel prices that will apply for the next seven days.
Following the commission's latest decision, the retail price of diesel rose to 104.5 denars per litre. EuroSuper BS‑95 is being sold at 99 denars per litre, while EuroSuper BS‑98 is priced at 101 denars per litre.
Officials say they are monitoring the market
Energy Minister Sanja Bozhinovska said last week that the government would take all necessary steps to protect citizens if fuel prices escalate, and that the situation is being monitored closely. She stressed the global nature of the price increases and recalled measures already taken, including an excise adjustment, the VAT cut and an agreed discount with OKTA.
"What is happening is at the global level. As we all follow, prices are rising everywhere. So, this is force majeure, a war over which we cannot influence. Last week we had an extraordinary online government session and since everything started, from March, we made excise and VAT reductions and agreed a discount with OKTA. We reduced VAT to 10 percent. We are discussing, watching and will consult at government level. Of course we are for protecting citizens' living standards, however we will have to consider the fiscal implications," she said last Monday.
Deputy Minister of Economy and Labour Marjan Risteski said last week that lowering VAT on fuels from 18% to 10% was saving citizens up to 350,000 euros per day. He also said the government has the capacity to deal with the crisis consequences and that measures are taken after detailed analyses and coordination among institutions.
Photo: press material from the event
