The United States (U.S.) and European Union (EU) sanctions against the Petroleum Industry of Serbia (NIS) could cause serious disruptions in Serbia’s fuel market. Experts warn of potential price hikes and logistical challenges.
Potential sanctions that the U.S. and the EU could impose on NIS due to its Russian ownership raise concerns about the stability of the fuel supply in Serbia. Experts warn of possible shortages and a significant rise in prices, which would directly impact the economy and the daily lives of citizens.
What would sanctions mean for NIS?
Milos Zdravkovic, an energy expert, explains how these sanctions could disrupt NIS operations.
“If sanctions were imposed, NIS would face serious problems with procuring crude oil and financing its operations, as it would be excluded from international trade flows,” Zdravkovic emphasized.
How much would fuel prices rise?
Zdravkovic points out that sanctions would directly affect fuel prices. “Fuel prices could increase by 10 to 20 percent, depending on how quickly new suppliers and alternative sources of supply are found,” he explained. He added that such a scenario would be extremely unfavorable for both citizens and the economy.
Does Serbia have an alternative?
According to Zdravkovic, Serbia would need to urgently seek alternative oil suppliers, but this process is far from simple. “Supply from alternative sources, such as the Middle East, Asia, or North Africa, involves high logistical costs, longer delivery times, and potentially higher raw material prices,” he emphasized.
Citizens are already expressing concern over possible fuel price increases, while experts like Zdravkovic highlight the urgency of diversifying energy sources.
“Serbia must immediately begin considering strategic solutions to mitigate the potential consequences for the fuel market and the economy as a whole,” Zdravkovic concluded.
“Fuel shortages are inevitable”
There is no doubt that the state has certain fuel reserves allocated for emergencies and supply disruptions, but according to Zdravkovic, these would not suffice.
“If supply via the Adria Oil Pipeline (JANAF) were cut off, it would lead to a complete collapse and fuel shortages. Our reserves don’t cover much; I’ve heard we supposedly have enough for two months, but sanctions aren’t imposed for short periods. And using barges to supply the country, as some have suggested, is simply not feasible,” Zdravkovic concluded, Nova.rs writes.
