North Macedonia’s Prime Minister Hristijan Mickoski said on Sunday a government decision to cut value-added tax (VAT) on fuel is expected to lower prices by around 6 to 7 denars per litre, as authorities prepare additional measures to stabilise the energy market.
The government has reduced VAT on petroleum products from 18% to 10% for a two-week period, aiming to ease inflationary pressure on households and the economy. Mickoski said that without the intervention, the Energy Regulatory Commission would have approved a further increase in fuel prices.
“Our calculations show there would have been an additional increase of around 6 to 10 denars per litre if we had not intervened,” he said, adding that the country remains exposed to global energy market movements.
Mickoski also announced that a nationwide state of crisis had been declared to facilitate the implementation of measures and institutional coordination. He said the electricity system remains stable and fuel reserves are sufficient for several weeks.
North Macedonia continues to have among the lowest fuel prices in the region, he said, which has increased demand from neighbouring countries. Authorities estimate that in border areas, up to 150,000 litres of fuel per day are consumed by foreign nationals, about 10% of total consumption.
“Companies hold reserves above the legal minimum of five days, while state reserves are sufficient for more than 60 days,” Mickoski said, ruling out for now restrictions on foreign buyers.
The opposition criticised the move. Venko Filipce, leader of the Social Democrats (SDSM), said the VAT cut was delayed and would not have a real impact on prices for consumers. He warned that recent increases in global oil prices would offset the measure.
“Citizens will not feel a real reduction in prices. We expect an additional increase of 4 to 6 denars per litre,” Filipce said, calling for deeper fiscal interventions, including a VAT cut to 5%, a reduction in excise duties and the removal of VAT on basic food products.
The government said the VAT reduction will take effect at midnight between March 23 and 24 and will last for two weeks, part of efforts to curb rising energy prices.
Authorities in Skopje said they will continue to monitor the market and coordinate with suppliers and regulators, warning of further action if new price shocks occur, largely driven by global energy markets.