Skopje, 22 March 2026 (MIA) - The Government has made two important decisions - to lower VAT on fuel and to release emergency oil stocks in order to hedge against spikes in energy and product prices, Prime Minister Hristijan Mickoski told a press conference after Sunday's government session on measures to ease the impact of soaring fuel prices. Mickoski noted that a decision has also been made to declare a nationwide state of crisis in order to enable necessary legal action and ensure institutional enforcement.

Under the Government's decision, as of Monday midnight, fuel VAT is set to drop in the next two weeks from 18 to 10 percent, which means fuel prices will drop by 6 to 7 denars per liter.

"We have a plan, and it is not a plan of just one or two steps, but a whole series of elaborate scenarios, if the crisis worsens or continues. Our calculations show that if the Government had not intervened, the Energy Regulatory Commission (ERC) would have authorized on Monday another increase in the price of diesel by 10.5 denars per liter, as well as an increase in the price of unleaded fuels by 6 denars – which would have meant an additional burden on citizens," Mickoski pointed out. 

He said he expects the ERC to take the Government's decision into account tomorrow, adding that the country's electricity sector is stable.

Mickoski stressed that in times of global crisis, the state must not be an additional burden, noting that the Government is directly meeting the needs of businesses and citizens who are already feeling the pressure.

"These decisions are a direct response to the demands and real needs of citizens and companies. Lowering taxes means lower fuel prices. This is the fastest way to soften the blow and prevent further price hikes throughout the economy. This is an intervention that breaks the chain of price hikes. Stabilizing fuel prices safeguards food, transport and service prices," the PM said. 

Mickoski stressed that the Government urges traders and manufacturers to adopt a responsible approach.

"In times of crisis, no one has the right to build profits at the expense of citizens. There will be stepped-up controls on the market. Any attempt at abuse, artificial price hikes or price gouging in these conditions will be identified, exposed and sanctioned. We will continue to monitor the situation closely," said the PM.

He pointed out that the country is no exception to the ongoing crisis due to the developments and military conflicts in the Middle East.

"All European countries, as well as countries in the world, have faced price shocks in fuels, which are soaring, alongside risks of soaring energy prices. Fuel price hikes are a significant input and a direct blow to household budgets. The free flow of oil has been disrupted. There are countries that are facing not only price shocks, but a shortage of oil derivatives for the normal functioning of their systems. Macedonia is part of the European and world chain," said Mickoski.

The PM added that the Government is keeping a close watch of the situation and coordination is ongoing with all stakeholders and distributors. He added that despite the circumstances, the country has some of the lowest fuel prices in the region – lower than Serbia, Kosovo, Croatia, Bulgaria, Greece, Slovenia and other countries.

"However, any increase in fuel prices represents a serious burden for every household budget. As Prime Minister, but also as a person who understands the needs of citizens, I want to underline that the Government will take action whenever permissible," the PM said.