BELGRADE, March 20 (Reuters) - Serbia will cut excise

duties on crude oil by a cumulative 60% to calm the local market

and offset the effects of the Israeli-U.S. war with Iran, the

country's President Aleksandar Vucic said on Friday.

Last week Serbia cut excise duties on fuel ​by 20% to

​prevent price ⁠hikes and Vucic said the government would cut

them by additional 40%.

"We will do it even at the cost of losing (tax) revenues,"

Vucic told a news conference in Belgrade.

Belgrade has maintained a price cap on diesel fuel and

gasoline since February 2022, with the government setting prices

weekly. On Thursday, Belgrade also extended a ban on crude oil

and fuel product exports until April 2.

Vucic said Serbia has ample reserves of diesel, gasoline and

natural gas in storage and there would be no fuel rationing at

petrol stations.

Earlier on Friday, in an Instagram post, Vucic said he met

Russia's Minister of Economic Development Maxim Reshetnikov and

discussed "energy and economic stability of Serbia, current

global trends and their implications for the region."

Russian energy giant Gazprom is Serbia's biggest

supplier of natural gas, covering up to 90% of its annual

consumption of around 2.5 billion cubic meters. Serbia's current

gas deal expires on March 31 and Belgrade sought an extension.

Vucic also said that Serbia faced increased risks in

securing continuous and reliable deliveries.

"This requires precisely defined and long-term sustainable

arrangements," he said.