North Macedonia brings back temp fuel VAT cut to 10% as Middle East conflict pushes pump prices higher
- North Macedonia has re-reduced VAT on fuel from 18% to 10% to contain price rises
- The measure is temporary (most of September), signalling a short-term stabilisation tool. It had been in place in April
- Impact expected to hold petrol prices steady, while diesel still rises slightly
From 15 September to the 28th, North Macedonia’s government had brought back a cut in fuel VAT rate.
April 2026: Rapid VAT response to oil price pressure
North Macedonia has extended by further two weeks cutting VAT on gasoline and diesel from 18% to 10%.
Announced by Prime Minister Hristijan Mickoski, the measure took effect from midnight on 23 March and was initially set to last two weeks, highlighting its role as a targeted, short-term intervention rather than structural tax reform.
With global oil markets rising, still above $100 per barrel threshold, the government is aiming to cushion immediate price shocks without committing to a prolonged fiscal cost.
See our Middle East conflict VAT tracker to see similar measures in other countries.
Limited but targeted price impact
The VAT cut is expected to have a differentiated impact at the pump:
- Petrol prices are expected to remain broadly unchanged
- Diesel prices are still projected to increase slightly, by around €0.04 to €0.05 per litre
At the time of the announcement, fuel prices had already climbed to approximately €1.40 per litre for petrol and €1.49 for diesel, underlining the urgency of intervention.
