The Government announced this afternoon that it is reducing the value added tax on diesel from 18% to 10%. According to the Government, the decision aims to mitigate the price shock affecting citizens and the business sector amidst a crisis situation caused by potential disruptions to the supply of oil and petroleum products.

Government calculations indicate that reducing the VAT from 18% to 10% will significantly soften the expected rise in fuel prices.

For diesel, instead of the normally anticipated increase of approximately 5 denars, this measure is expected to result in a decrease of about 2 denars. This represents a total reduction of the price shock by around 7 denars, bringing the new price to approximately 99 denars per liter. Regarding gasoline, calculations project an increase of about 3.5 denars; this means the new price would be approximately 100.5 denars per liter for EUROSUPER BS-95 and 102.5 denars per liter for EUROSUPER BS-98, the Government’s press service noted.

The preferential tax rate will take effect at midnight on September 15 and remain in force until September 28. With this decision, the Government is taking a concrete and timely measure to protect citizens’ living standards, reduce the financial burden, and support the business sector amidst the crisis. The Government continues to closely monitor the situation in the petroleum products market and to take measures in the interest of citizens and the economy, the statement reads.