Minister Sekulić: Cabinet does not determine prices of petroleum products, there is no crisis, economy announces there will be no price increase

Podgorica, Montenegro (31May 2018) -- Economy Minister Dragica told the press earlier today that the Cabinet had the opportunity to get acquainted with the movement of oil derivatives prices.

She pointed out that neither the Ministry of Economy nor the Government of Montenegro determine the prices of petroleum products, but that using the Regulation on the method of forming the maximum retail price of petroleum products they define the maximum retail price, which would mean that in some way they limit domestic oil companies at what price they can sell petroleum products.

"Considering the latest price increase, especially in the diesel that is most used in the economy, we have noted in communication with the economy and business associations, that at this moment we are not in a crisis situation, that there is no room to raise any alarm regarding the current price of petroleum products in particular because the economy, as well as the business associations, announced that there will be no increase in retail prices, prices of foodstuffs, prices of transport services, or the spillover of the price of petroleum products to the largest number of food products," said Minister Sekulić.

As she pointed out, the reason for this rise in prices was the jump in the oil derivatives exchange, as well as the strengthening of the dollar against the euro, highlighting that the Government has not changed or increased its excise on oil derivatives in 2018.

Minister Sekulić stressed that the prices of petroleum products are aligned with prices in the region, which is very important from the aspect of the gray economy, and that the Government will monitor the movement of the price of oil derivatives.

"According to what we see now, we do not expect price increases. However, since it is a stock exchange, I cannot confirm this. Our expectations are that there will be no growth, but in any case, at the next Cabinet meeting, we will inform the Government about the situation and determine whether it is necessary for the Government to react in order to prevent the inflationary impact of the increase in the price of derivatives on other products and services in Montenegro," concluded Minister Sekulić.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO