Clarion Partners - Owner's Engineer

Oil cheaper, but fuel not

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The price of naphtha on world stock exchanges but also those in the neighborhood has dropped but the price of fuel in Serbia has not. Why it is so, nobody of business people dealing with naphtha and naphtha derivatives has a concrete answer to offer. To make the matter worse any possibility of lower prices is not in sight and Serbia continues to be among the most expensive in the region.

The only explanation given by naphtha traders is that the prices cannot go down because they have purchased naphtha earlier at higher prices. They also claim that prices are calculated based on situation on local market and not on the situation in the world market.


Still it is difficult for customers to accept that explanation when they see that prices in the neighboring countries are going down. At the MOL Company they say that there are three key factors in calculating fuel prices on the domestic market: crude oil prices in the world market, national currency and US Dollar exchange rate and domestic taxes.

At the Petrol Industry of Serbia (NIS) they point out to support healthy competition in Serbian market of naphtha derivatives. ‘We are making efforts to keep our prices competitive and not higher than average ones in the regional market’, the people at the NIS said.

The fact is however, that prices in the neighboring countries have already begun to drop as is the case in Croatia since the last night.



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