Serbia to cut excise duties on crude oil, President Vucic says

BELGRADE, March 20 (Reuters) - Serbia will cut excise duties on crude oil by a cumulative 60% to calm the local market and offset the effects of the Israeli-U.S. war with Iran, the country's President Aleksandar Vucic said on Friday.

Last week Serbia cut excise duties on fuel ​by 20% to ​prevent price ⁠hikes and Vucic said the government would cut them by additional 40%.

"We will do it even at the cost of losing (tax) revenues," Vucic told a news conference in Belgrade.

Belgrade has maintained a price cap on diesel fuel and gasoline since February 2022, with the government setting prices weekly. On Thursday, Belgrade also extended a ban on crude oil and fuel product exports until April 2.

Vucic said Serbia has ample reserves of diesel, gasoline and natural gas in storage and there would be no fuel rationing at petrol stations.

Earlier on Friday, in an Instagram post, Vucic said he met Russia's Minister of Economic Development Maxim Reshetnikov and discussed "energy and economic stability of Serbia, current global trends and their implications for the region."

Russian energy giant Gazprom GAZP.MM is Serbia's biggest supplier of natural gas, covering up to 90% of its annual consumption of around 2.5 billion cubic meters. Serbia's current gas deal expires on March 31 and Belgrade sought an extension.

Vucic also said that Serbia faced increased risks in securing continuous and reliable deliveries.

"This requires precisely defined and long-term sustainable arrangements," he said.