People in Bosnia and Herzegovina have started topping up the fuel tanks of their vehicles ahead of the announced price rise that will come into effect on Thursday, when a new excise tax law takes force.
The law was adopted by Bosnia’s state parliament in mid-December, after almost a year of strained negotiations, mainly under pressure from the European Union, the International Monetary Fund, IMF, and other international financial organizations that conditioned continued financial support for Bosnia with adoption of this law.
In line with this law, the cost of highway tolls will go up while prices of both diesel and gasoline will increase by 0.18 marks [0.1 euros] per litre.
Prices of “greener” fuels, such are liquid natural gas, LNG, and biofuel will increase even more, by up to 60 euro cents per litre.
Some experts fear the increases will trigger a chain reaction, which may have a significant impact on the country where many live on the verge of poverty.
“When fuel prices rise, this creates a chain reaction whereby the price of all other goods that cannot be produced or distributed without fuel rise as well. The only question is just how much,” Marko Djogo, a professor of economics, told BIRN.
In addition, Djogo said that global prices of oil are also expected to rise in this year, which would mean further price hikes in Bosnia.
“Prices of [many other] goods will rise due to the new law, which will be devastating for families who can barely afford a decent life as it is now,” Zoran Pavlovic, a Banja Luka-based economic analyst, told BIRN.
For more read the full of article at The Balkaninsight
