According to the Chamber of Commerce, the situation in Ukraine is leading people to stockpile supplies. On Thursday night and early Friday morning, people queued at the pumps for fuel. Meanwhile, the government is trying to reassure everyone that there are sufficient supplies of goods. According to Dusan Bajatovic, director of the Serbian gas company, gas prices will not increase until 31 May. Serbia has not imposed sanctions against Russia.

Petrol stations stormed because of „news” spreading on social media

There were long queues at petrol stations in Serbia when fuel purchases were restricted, and petrol coupons are still all too familiar to Serbs from the 1990s. During the Yugoslav Wars, due to austerity measures and sanctions, Serbs had already experienced what it was like to queue for hours for a few litres of fuel. Now, the Ukraine-Russia conflict is threatening to trigger another economic crisis affecting the whole of Europe and the world. In such an environment, any misinformation or fake news can cause panic within the population. We saw a serious example of this on Thursday night and Friday morning in Serbia. „News” of limitations on fuel buying at the pumps spread like wildfire on social media prompting people to immediately fill up not only their vehicles, but almost everything they could get their hands on – barrels, tanks and bottles.

The Serbian government reacted immediately: They issued a statement, reassuring people that there is no general fuel shortage. The problem stemmed from people flocking to the stations, so in some places the huge demand may have caused a temporary shortage. By Friday morning, the queues at petrol stations had cleared and supplies were steady. The Belgrade government issued a decree on 10 February, similar to the one in Hungary, to cap the retail price of fuel. This decision is valid until 10 March. It was also decided that limiting the amount of fuel that consumers can purchase is also forbidden. Those going against the order risk severe fines, ranging from 100,000 dinars (860 euros) to 2 million dinars (17,000 euros) or even imprisonment of six months. The first punitive fines have already been meted out by the inspectorate to some petrol stations that decided to restrict sales.

Demand for basic foodstuffs is growing

In Serbia, there is a noticeable trend of people buying larger quantities of basic foodstuffs. Over the weekend, there were several instances of people queuing for shopping trolleys in stores’ car parks. Nevertheless, there is sufficient supply of everything, with a wide assortment of goods available in the shops. An increase in prices can be seen, but it is still bearable for most wallets.

There is an adequate supply of basic foodstuffs, and the same applies for fuel, Bojan Stanic told Radio and Television Serbia (PTC). According to the assistant director of the Chamber of Commerce, responsible for strategic analysis, no significant price increases are expected. Their research shows that daily demand for some products, such as flour, has increased by around 120 per cent compared to the 30-day average. According to the expert, this has resulted in some empty shelves in several shops, but this is only temporary. There are sufficient reserves and retailers are continuously stocking shelves. Since the beginning of the year, the price of wheat has risen by 70 per cent. Serbia is fortunate to have enough bread grain even for export. Of course, only if it will not be restricted.

Serbian President Aleksandar Vucic said in a television interview on Saturday evening that the government will take a decision next week to limit wheat exports to ensure that there is enough domestically. However, the head of state has also raised the possibility of allowing the exporting of wheat with special permission granted by the government.

No increase in gas prices until June

There is no reason for insufficient natural gas supplies in Serbia, and the price will not increase until 1 June, Dusan Bajatovic told the press. According to the director of the Serbian gas company, they had enough funds to fill the gas storage facility in Banatski Dvor in time, and there is no need to fear either a shortage of gas or a price increase.

Mr Bajatovic also announced that new negotiations with Russia on a new 10-year gas supply contract will start soon. He said that the price will certainly be higher than the current price of 270 dollars for 1,000 cubic metres of gas, but Serbia will still be receiving gas at a sub-market price.

As previously reported by V4NA, although Belgrade supports Ukraine’s territorial integrity, it has not introduced sanctions against Moscow. According to the Serbian leadership, this would run counter to the country’s own interests.