Montenegro’s petroleum distributors are seeking a postponement of up to 12 months for mandatory fuel marking, citing potential increases in retail prices, logistical complications and safety concerns surrounding the planned introduction of the system.
Representatives of Jugopetrol, INA, Petrol MNE, Lukoil Montenegro, Hifa Oil CG and other domestic fuel distributors have asked the government to delay implementation.
The companies have raised concerns about procedures involving the opening of tankers and the addition of chemical markers to fuel entering Montenegro. They argue that these operations could create safety and operational difficulties and have questioned whether some proposed procedures comply fully with European rules on petroleum transport and handling. The Energy Ministry has rejected the postponement request, maintaining that implementation is expected to begin following the completion of final technical preparations.
Fuel Marking Costs and Expected Fiscal Revenue
The government expects tighter fuel controls to generate approximately €5 million in additional public revenue, primarily through improved monitoring of petroleum products entering and circulating within the domestic market. The estimated cost of implementing the fuel-marking system is approximately €3 million. Industry estimates indicate that marking, logistics and administrative expenses could add at least €0.02 per litre to retail fuel costs.
No corresponding retail-price adjustment has been formally adopted. The estimated increase illustrates the potential for implementation costs to be passed on to consumers. The financial implications extend beyond fuel purchases. In Montenegro, changes in fuel prices directly affect freight transport, construction, agriculture, tourism and household transport costs. Domestic prices are also sensitive to excise policy and movements in international petroleum markets.
Distributors Raise Transport and Safety Concerns
Fuel distributors say the main challenge extends beyond the cost of the chemical marker itself. Additional waiting times at border crossings and ports could increase tanker utilisation costs, driver hours and inventory requirements.
These factors are particularly relevant to Montenegro’s relatively small market, where distributors depend heavily on imported petroleum products. Delays in handling fuel shipments could create additional operational costs throughout the supply chain. The proposed procedures have also raised questions about the safety of opening tankers and introducing chemical additives during fuel-handling operations. Companies have challenged whether all elements of the proposed process are fully aligned with European requirements governing petroleum transport and handling.
Government Seeks Greater Control Over Petroleum Supply
The government intends for mandatory fuel marking to strengthen oversight of the petroleum market, reduce opportunities for tax evasion and improve product traceability throughout the supply chain. Such systems can help authorities identify illegally imported or untaxed fuel, supporting enforcement of petroleum-market and tax rules.
The expected fiscal benefit is approximately €5 million in additional annual revenue, compared with estimated implementation costs of around €3 million. The financial assessment also involves the potential costs borne by legitimate distributors through additional handling, logistics and administrative requirements. Distributors will need to adapt their operations if implementation proceeds without amendments to the proposed procedures.
