Diesel prices in Montenegro have risen by €0.03 per litre, while retail petrol prices have remained unchanged, increasing operating costs for businesses that rely heavily on road transport. The adjustment affects a range of sectors, with diesel widely used by freight operators, construction companies, agricultural producers, public transport providers and tourism-related service businesses.
Companies operating large vehicle fleets face a greater impact from changes in fuel prices. Montenegro’s fragmented logistics market and reliance on road transportation make it difficult for businesses to absorb additional fuel expenses without transferring at least part of the increase to customers. The price change comes alongside renewed political pressure on the government to reduce VAT on fuel. Advocates of lower fuel taxation argue that such a measure could reduce transport costs and limit inflationary pressure. Fuel duties and VAT, however, remain significant sources of budget revenue, meaning a reduction in taxation would have fiscal implications.
The increase also affects the movement of goods through Montenegro’s supply chains. The country imports most consumer and intermediate goods, leaving food, construction materials and merchandise exposed to higher transportation costs as diesel prices rise. The immediate inflationary impact of the €0.03 per litre increase is limited at the individual-consumer level. For businesses, the effect is linked to the cumulative cost of fuel across vehicle fleets and distribution operations, particularly where imported products and road transport account for a substantial share of operating expenses.
