The increase in fuel prices in Bosnia and Herzegovina is generally accompanied by rapid and linear growth prices of other goods and services, however when the fuel falls, other goods are not followed by that declining trend.
In recent months, we are witnessing a significant drop in fuel prices on BiH. pumps despite the problematic geopolitical circumstances that leave the consequences of economic flows in the world.
How much fuel prices really dictates market movements, whether lower prices of other products and services, but also many other issues for clix. The answers given by the Doctor of Economic Sciences and the President of the Academy of Sciences and Arts BiH Muris Čičić.
“The correlation between fuel and food prices as well as the price of services is not as direct and automatically, we don’t have it, and then it determines that everything that affects the prices is mostly reflected through the price of oil in the world market,” says Čičić.
Indirect connection
Fuel price, transferring from oil prices affects all what fuel consumption plays a significant role. In the first row, it is about transport, but also the production processes that the most primary manufacturers feel. Although there is a direct and automatic connection for the average citizen, according to our interlocutor, it cannot be discussed here about a chain reaction.
“In our environment, there is a wrong opinion that this is the chain reaction, because there is a product that we need to see how much fuel is to directly affect the formation of producers spend a lot of oil and gasoline that they need for Mechanization, “Our interlocutor claims.
Blue Diesel
In order for states to help farmers are formed a product called blue diesel. Ordinary and blue diesel are exactly the same as the composition, the only difference is in color, because the ordinary salary is paid, and the blue tax is free. Of course, Bosnia and Herzegovina remains the only country in Europe that did not introduce the measure of “blue diesel” for farmers. Although farmers have referred numerous appeals and demands for the introduction of “blue diesel” for years.
“This fuel is adequately cheaper to have minor production, because the agricultural production is strategic and each country encourages that this is not enough to conclude that fuel affects the price of the product,” Čičić said.
The same opinion is the President of the Farmers of the FBiH, Nedžad Bećo, which says to avoid excise duties and according to his words, a unnecessary levies market situation would be significantly better than current.
“Blue diesel with us, at least as far as agricultural production, does not exist for the last fifteen years, and that the absurd situation is, not only in Europe, I do not see the reason that the same diesel cannot use the farmers. How much would it Help? It would help to ensure that agriculture would be well, well recovered. “
Other factors
In addition to the direct influence of the current market fuel prices, it is necessary to take into account the ITEM production cycle that usually lasts several months. During this period, fuel consumption is fueled by the price varies and often the lowest price in the specified period is not grateful to consider.
“You can’t say, Eh is cheaper now, it will be a butter cheaper. Some producers are more productive, some that is called inflation, ie the market increase in the market,” Ćicic points out.
The price level, except for fuel prices, is also conditioned by many other factors. The fact is that we import more than we are exporting is also an important factor when forming prices. When asked whether the price level is justified and which can ultimately lead, prof. Čičić replies:
“The price level is difficult to use the word justified. The price is the economic category, because you are in the cost of inputs, but also competitions, the market situation, monopolies and the prices of high because they are the income is low”, concluded Čičić, writes Clix.
