N.Macedonia Approves Package to Reduce Fuel Price

The Assembly of North Macedonia on Friday at midnight approved the measures to deal with the economic crisis, the law on reducing the excise tax on fuel that the state receives from the sale of fuel, as well as the law on reducing Value Added Tax (VAT) on fuel, from 18 to 10 percent. 

The law on the reduction of VAT on basic food to 0 percent has been approved. The laws were approved with 95 votes by the MPs of all political parties. A liter of diesel in Northern Macedonia on Friday sold for 97 denars (1.57 cents) while gasoline for 93 denars (1.51 cents). For the first time, the price of oil has surpassed that of gasoline. 

Their price is expected to decrease by 10 denars (0.16 cents) with the approval of the laws and their publication in the Official Gazette. The measures envisage keeping under control the price of electricity and district heating as well as the abolition of VAT on all basic food products. 

Despite unanimous support for their abbreviated approval, the Coordinator of the VMRO-DPMNE parliamentary group, Nikola Micevski, remarked why the measures had not been approved earlier. 

"Instead of pretending to be worried now and calling urgent hearings, such measures could have been adopted two weeks ago, when VMRO-DPMNE had presented its proposals. This would prevent panic among citizens," Micevski said. 

VMRO DPMNE had proposed a reduction of the excise tax on fuel by 50 percent, but this proposal of the opposition has not yet been placed on the agenda of the Assembly. 

The Government of North Macedonia on Friday decided to ban the export of certain foodstuffs for ten days. The decision includes the export of wheat, barley, corn, flour, sunflower seeds, as well as oils. 

"The purpose of this measure is to protect the local market and protect citizens in times of crisis," said the Minister of Economy, Kreshnik Bekteshi. 

Unofficially, the decision is related to the announcements that large quantities of wheat have been exported to Greece, while in Kosovo large quantities of local oil, of the Briliant type. 

The price of oil in Northern Macedonia reaches 1.80 euros. The Government said that the decision to restrict exports was taken as a reciprocal response to similar measures taken by several countries in the region. 

Serbia has announced that it has banned the export of wheat and flour to countries in the region, including North Macedonia, which was awaiting the import of about 50,000 tonnes of wheat and flour.