North Macedonia recorded the sharpest increase in diesel prices among a group of 13 European countries between late February and the end of July, with pump prices rising 42.8%, more than double the increases seen in most neighboring and EU states, according to a comparison of retail fuel prices.
The data show that diesel prices in North Macedonia climbed to 98.5 denars per litre on July 31 from 69 denars on Feb. 27, an increase of 29.5 denars.
By comparison, Kosovo recorded the second-largest increase at 21.3%, followed by Albania (20.3%), Montenegro (19.7%) and Greece (18.7%). In the European Union’s largest economies, the increases were significantly lower, ranging from 11.2% in France to 13.7% in Italy. Germany posted a 12.3% rise, while Austria recorded 12.8%.
Converted into euros (using the denar’s fixed exchange rate of about 61.5 MKD per euro), diesel in North Macedonia increased from approximately €1.12 per litre on Feb. 27 to €1.60 per litre on July 31, an increase of €0.48 per litre. This brought North Macedonia’s diesel price close to those in Croatia (€1.62) and Slovenia (€1.63), despite starting the period with one of the lowest prices in the region. While North Macedonia’s absolute price remains below Italy (€1.91), France (€1.88) and Germany (€1.82), its 42.8% increase was by far the steepest among the countries compared, far exceeding Kosovo (€1.22 to €1.48; +21.3%), Albania (+20.3%), Montenegro (€1.32 to €1.58; +19.7%) and Greece (€1.55 to €1.84; +18.7%). The euro conversion highlights that North Macedonia moved from having one of the cheapest diesel prices in Europe to being broadly in line with several EU member states within just five months.
The figures suggest that North Macedonia’s diesel prices have risen at roughly twice the pace of most regional peers and more than three times faster than several Western European countries during the same period.
Fuel prices across Europe have been under upward pressure in recent months due to stronger global oil prices, geopolitical tensions affecting energy markets and seasonal demand during the summer travel period. However, the magnitude of the increase varies considerably from country to country, reflecting differences in taxation, government intervention, currency movements and the structure of domestic fuel markets.
North Macedonia operates a regulated fuel-pricing mechanism in which retail prices are adjusted by the Energy Regulatory Commission based on international oil quotations, import costs, exchange rates and tax components. Despite that mechanism, the country’s increase substantially exceeded those recorded in neighboring markets that are exposed to similar international price trends.
The sharp rise is expected to feed into inflationary pressures because diesel is the primary fuel used in freight transport, agriculture, construction and much of the country’s industrial activity. Higher transport costs typically translate into more expensive food, consumer goods and services, affecting businesses and households alike.
Economists note that sustained increases in diesel prices can weaken the competitiveness of export-oriented industries by raising production and logistics costs, while also reducing disposable income as households spend more on transport.
The comparison also highlights a widening gap between North Macedonia and the rest of the region. While most neighboring countries recorded increases of between 15% and 21%, North Macedonia’s 42.8% surge stands out as an outlier, suggesting that domestic factors may have amplified the impact of global energy market developments.
Whether the increase proves temporary will depend largely on international crude oil prices, exchange-rate movements and future decisions by the country’s energy regulator regarding retail fuel pricing.