At its session on Saturday after reviewing the current economic situation and the impact of global price shocks on the domestic market, the Macedonian Government decided to extend the measure to reduce excise taxes on oil derivatives effective until May 4, 2026.
According to the calculations, it is expected that the Energy Regulatory Commission (ERC) will adopt a decision that will lead to an additional reduction in the retail prices of oil derivatives by an average of around MKD 1.5 per liter, the Government said in a press release.
With this decision, the government press release notes that the reduction of the excise tax on diesel fuel remains at MKD 4 per liter, along with a MKD 2 per liter reduction in the excise tax on unleaded gasoline (95 and 98 octane). This intervention has a direct fiscal and market effect, which is reflected in a significant reduction in retail fuel prices, thereby easing pressure on the cost of living and dampening inflationary pressures.
“By extending this measure, the government clearly demonstrates a proactive and responsible approach to crisis management, with the protection of citizens’ living standards and the maintenance of economic stability remaining a priority,” reads the press release.
In view of the stabilizing effects of the current measures and ongoing price movements, the government decided to amend the decision on the preferential VAT rate. The 10 percent reduced rate will remain in place for gasoline, while the standard rate of 18 percent will apply again to other products.
