Government extends reduced VAT on diesel until October 12
Government extends the lowered VAT rate for diesel to October 12; RKE will announce new retail prices amid crude near $110/bbl.
The Government of North Macedonia has extended the reduced value-added tax rate for diesel fuel from 18% to 10% until October 12, the cabinet decided at a morning session. No other measures were approved during the same meeting.
Market context and regulator decision awaited
Earlier this year authorities also cut the excise duty on fuels, a separate move intended to ease pump prices. Today the Energy Regulatory Commission (RKE) is scheduled to announce updated retail prices for both diesel and gasoline.
International oil markets remain an influencing factor: on exchanges this morning the price of crude was reported close to $110 per barrel, keeping pressure on domestic fuel pricing.
At its previous price update the RKE raised the price of diesel by 5.5 denars per litre while lowering gasoline prices by 1.5 denars per litre. Observers are now watching whether the regulator’s new decisions will reverse, repeat or modify those changes.
The VAT cut for diesel will remain in force through October 12; until the RKE publishes new retail figures, the combined effect of the tax measures and world crude movements will determine final pump prices for consumers.
Photo: press material from the event
