Crude Flows Recover Toward Pre-War Levels, Fuel at the Pump Doesn't — Why the Market Drop Isn't Reaching Drivers
Brent crude fell below $71 a barrel, returning to pre-war levels with Iran, as flow through the Strait of Hormuz normalizes — but pump prices aren't falling at the same pace.
Brent crude fell below $71 a barrel, returning to levels seen before the military conflict with Iran began, following signs that flow through the Strait of Hormuz is normalizing. This confirms a stabilizing trend after months of volatility driven by tensions in the Gulf.
Still, the drop in the market price of crude doesn't automatically or immediately pass through to prices at the pump. Excise duties, distributor margins and the exchange rate remain unchanged regardless of market movements, and the Energy Regulatory Commission adjusts fuel prices weekly, with some lag relative to global movements. In addition, the reduced 10% VAT rate on fuel, introduced as a temporary measure, already partly absorbs the difference that would otherwise pass through to consumers.
The gap between how fast the market falls and how fast pump prices fall remains a frequent source of consumer frustration, since people logically expect faster relief when oil gets cheaper globally. Experts warn that beyond the time lag, the structure of fuel pricing — with fixed taxes and excise duties — means part of the drop will never fully reach drivers.
MKNews Hub · Macedonia · October 2, 2026
