According to the latest IMF country report, Serbia’s fuel supply remains heavily reliant on the Pančevo oil refinery, which meets roughly four-fifths of domestic demand. The report notes that replacing NIS’s distribution network with imported fuels would face significant logistical challenges, particularly the lack of oil pipelines connecting Serbia to refineries in neighboring countries.
The IMF estimates that transporting diesel and petrol by road or river could cover no more than about 80% of national consumption, and even then, imported fuels would cost around 25% more than products refined domestically at Pančevo.
The report highlights that crude oil deliveries via the JANAF pipeline—the refinery’s sole supply route—ceased following the imposition of sanctions in early October. The Pančevo refinery initially continued operations using its own crude reserves, but these were depleted by early December, leading to a temporary shutdown of refining operations.
To mitigate the disruption, Serbian authorities increased strategic stocks of diesel and petrol. Meanwhile, state institutions have been pursuing a longer-term solution focused on lifting sanctions on NIS, restoring refinery operations, and ensuring a secure and regular fuel supply, the IMF report notes.