Azernews.Az

BELGRADE – Serbia will end its monopoly on oil imports held by Naftna Industrija Srbije AD and cancel price caps on gas, diesel and heating oil as of Jan. 1, Bloomberg reported.

The government made the decision today, keeping a promise to liberalize oil imports and the retail market for oil derivatives, it said in an e-mailed statement.

Retailers on the 3 billion euro ($3.94 billlion) market will be free to import the derivatives independently from NIS, or continue buying them from the refineries run by the biggest oil company in Serbia, majority owned by OAO Gazprom Neft.

The government has issued 240 licenses so far for oil derivatives trading, which includes variations of diesel, gasoline and liquid natural gas for vehicles.

Key companies on the market, along with a chain of NIS gas stations, include local units of Mol Nyrt, OMV AG and OAO Lukoil.

Trade Minister Slobodan Milosavljevic recently said the new market should help lower retail prices. The government has formed a supervisory group that may recommend reinstating price caps at any point, in case of price-fixing or other attempts to manipulate the market.

NIS in October started a $26 million upgrade of its refinery in Pancevo, east of Belgrade, in order to improve its efficiency and offer products at competitive prices as of January.

The upgrade is part of Gazprom Neft’s pledge to invest 500 million euros in the company after having acquired a 51 percent stake for 400 million euros in 2009.