North Macedonia Temporarily Cuts VAT on Fuel

North Macedonia temporarily reduced VAT on fuel from 18% to 10% from March 23 for two weeks to mitigate the impact of rising global oil prices. The measure is expected to stabilize petrol prices and slightly limit diesel increases, serving as a short-term relief rather than a permanent tax change.

North Macedonia has reduced VAT on fuel (petrol and diesel) from 18% to 10%.

The measure came into effect on March 23 and will last for two weeks, showing that it is a short-term solution aimed at stabilising prices rather than a permanent tax change.

The government’s goal is to reduce the immediate impact of global oil price increases on consumers, without creating long-term budget pressure.

The VAT reduction is expected to have a limited but targeted effect:

-       Petrol prices are expected to stay mostly stable,

-       Diesel prices may still increase slightly, by about €0.04–€0.05 per litre.

At the time of the decision, fuel prices were already around €1.40 per litre for petrol and €1.49 for diesel, which prompted the government to act quickly.