Aug. 24 (Bloomberg) -- Serbia will cut excise duties on fuels partly produced with biofuel to stimulate the use of renewable sources and ease price pressures as crude oil costs rise, Energy Minister Zorana Mihajlovic said.
Fuel produced entirely from biomass is already excise free in the Balkan country and regulations will be amended to reduce the duty for fossil fuels mixed with 5 percent to 15 percent of biofuel, Mihajlovic told reporters today at Serbia’s main refinery in Pancevo, east of Belgrade. The cut will be in proportion to the percentage of biofuel in products, she said.
The refinery has almost completed a 550 million-euro ($688 million) upgrade and will begin production of diesel and gasoline of only Euro 5 quality in November, said Kirill Kravchenko, the chief executive officer of Naftna Industrija Srbije AD, which owns the facility. Euro-5 fuel has a maximum sulfur content of 10 parts per million, making it less polluting than lower grades.
The processing capacity of the Pancevo refinery will remain at 4.8 million tons of crude a year after the upgrade, with the annual output seen at as much as 1.5 million tons of diesel, 800,000 tons of gasoline and 300,000 tons of jet fuels, among other products, said Miroslav Niciforovic, a director at the refinery.
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