Hristijan Mickoski: State energy system stable, fuel prices expected to fall and budget rebalance planned

Prime Minister Hristijan Mickoski said the country is energetically stable and fully prepared for the coming heating season, speaking today while inspecting construction work on the Ljubljanska Street bridge in Skopje. He announced an expected drop in the prices of diesel and gasoline next week and said the government plans a formal budget rebalance by the end of October.

Energy repairs, water and fuel measures

Mickoski said repair work on the thermal units at REK Bitola and Oslomej are in their final phase or will be completed by the end of the month. He added that the country’s hydropower reservoirs are currently at a satisfactory 40 percent of capacity and that, with anticipated autumn and winter rainfall, authorities expect to reach 80–85 percent by the next irrigation season.

As a principal challenge during the heating period — which he expects to begin fully in the second half of November — Mickoski pointed to air pollution caused by the use of non-environmentally friendly fuels for home heating across the country. Regarding district heating in Skopje, he said that summer maintenance and repairs to the network should halve water losses.

Based on market movements, Mickoski expects the Regulatory Commission for Energy (RKE) to decide next week to reduce diesel and gasoline prices. He also said the government is negotiating with the company OKTA to secure an additional discount on fuels.

"With that we will be convincingly the country with the lowest fuel price in the region, and perhaps in Europe. That enables social peace and a controlled inflation rate, which at this moment is 50 percent lower than the EU average," Mickoski said.

Unlike some EU and G7 countries that are opening strategic reserves for emergency supply, Mickoski assured that North Macedonia has no problem with stockpiles and that all supplier contracts are secured and respected at least until New Year.

Because of reduced revenues from excise duties and VAT on fuels, Mickoski announced a formal budget rebalance during this month. "Only on excise alone the estimates are that about five billion denars will be missing. If VAT is added, especially for diesel which has a reduced rate, we reach a figure of 7–8 billion denars, which cannot be covered by redistribution, a formal rebalance will be necessary," he explained, adding that protecting citizens’ living standards remains a priority and that the budget deficit could even be reduced further by cutting both revenues and expenditures.

On proposals to extend the cheap daytime electricity tariff, Mickoski said he would welcome any reform that benefits citizens.

Photo: press material from the event