(VIDEO) Muleskovic: If fuel prices increase significantly, there will be a general increase in prices

Experts warn that higher fuel prices could lead to higher food prices, as well as services such as taxis. However, they say there is no need to panic when it comes to shortages, but that what matters is how the state reacts, especially when it comes to fuel excise taxes.

Economists warn that if geopolitical tensions continue and the oil market remains volatile, living standards could come under further pressure, while the costs of everyday life could continue to rise in the coming months.

"If the war were to end in the coming period, the consequences would be less severe. If it were to continue, we would have a general increase in prices due to the large increase in the prices of oil and oil derivatives, so there was a slight drop, but now we have an increase again, which clearly indicates that if it continues, it will lead to an increase in the prices of all other costs. If there is an increase in transportation prices, it is clear that there will be an increase in all prices," said economic analyst Mirza Mulešković.

Every increase in oil prices almost always leads to an increase in food prices. More expensive fuel means more expensive transportation, production, and distribution. Yet when oil prices fall, food prices rarely follow suit.

"If there is a large increase in fuel prices, there will be a general increase in prices. When fuel prices fall, prices do not fall. We need to have measures in place to ensure that the living standards of citizens are not jeopardized," said Mulešković.

Experts say there is no reason to panic about potential shortages. What they point out is that the government must carefully conduct economic policy, especially when it comes to fuel excise taxes.

"We all know that there will be no shortages. We created panic with these things, so we had to treat that panic. What the government needs to do is monitor the situation in an interdepartmental manner and see before the next fuel price calculation whether it is necessary to reduce excise duties, so as not to cause a greater increase in prices," Mulešković points out.

The rise in fuel prices could also affect taxi fares. Transport operators warn that operating costs are directly linked to the price of fuel, so any new price increase puts an additional burden on their operations. It is realistic to expect that taxi fares will also become more expensive in the coming period.

"The increase in fuel prices ties these taxi services together. I am in favor of the fact that if fuel prices increase, taxi services must also grow, because this trend is followed by one kilometer of taxi services and one liter of fuel. Taxis are a luxury everywhere," taxi entrepreneur Goran Pajović told us.

However, even though fuel prices have drastically increased, traffic jams on the streets of Podgorica are still a common sight.

"When we look at the situation like this, there are vehicles passing by every minute and every second on this side street, I would say that these people obviously have a lot of money," adds Pajović.

Economic analyst Mirza Muleskovic points out that the Middle East region should not only be viewed through oil, but also through a large number of precious metals and commodities that Iran is rich in, the shortage of which can be reflected in a wide range.

In light of the war in the Middle East and the increasing price of oil, we asked the citizens of Podgorica whether they fear an increase in the price of basic foodstuffs.