Montenegro is introducing a new measure to support farmers by returning part of the excise tax they pay on fuel used for agricultural machinery. The Ministry of Agriculture, Forestry and Water Management announced that this will be the first time farmers in Montenegro receive a refund of fuel excise duties. The measure is designed to reduce agricultural production costs at a time when fuel remains a major expense for farmers and to support productivity and domestic food production. The legal basis comes from amendments to Montenegro’s Excise Law that entered into force at the beginning of 2026, transferring responsibility for the refund to the Ministry of Agriculture.
The support will apply to registered agricultural holdings, with eligible fuel quantities calculated according to the amount of agricultural land and the type of production. For crop production, the calculation is based on 110 liters of fuel per hectare annually. Fruit growing, vineyards and olive production will receive calculations based on 70 liters per hectare, while meadows will be calculated at 40 liters per hectare. The planned support is based on agricultural areas that received subsidies in 2025, covering approximately 45,185 hectares, with the estimated cost of the excise refund reaching around €1.08 million.
The government considers the measure particularly important because tractors and other agricultural machinery require substantial amounts of diesel during planting, cultivation and harvesting. Higher fuel costs can therefore directly increase the cost of producing food. The new system differs from a general reduction in fuel prices because it specifically targets eligible agricultural producers and calculates support according to their registered land and type of production. Montenegro has also previously used temporary reductions in fuel excise duties to limit the impact of changing international energy prices on households and businesses.
For farmers, the refund could provide meaningful financial relief while production costs remain high. The government also expects the measure to support domestic food production by helping agricultural businesses manage one of their most important operating expenses. By linking the refund to registered agricultural holdings and subsidized land, authorities can target assistance according to the scale and type of agricultural activity. Montenegro’s first fuel excise refund for farmers therefore marks a new form of direct agricultural support and could become an important part of the country’s agricultural policy in the years ahead.
