After a long period of regulation, the Croatian Government has decided to allow its biweekly fuel price cap to expire. The measure, which set maximum retail prices for gasoline, diesel, blue diesel, and liquefied petroleum gas every two weeks, will no longer be renewed. Going forward, domestic fuel distributors will be free to set their own prices based on market conditions.
Government officials emphasized that the fuel market is currently stable but warned they are prepared to reinstate price controls if distributors act irresponsibly. The Ministry of Economy noted that price caps were crucial over the past three years, helping to protect households and support the economy amid volatile global oil markets. Throughout that period, the Government adjusted its measures in response to market trends to ensure both price predictability and supply security.
Now, with global and regional markets showing signs of stabilization, the Ministry believes that reliable pricing and steady supply chains justify the removal of the cap. Nonetheless, it will continue monitoring wholesale and retail prices closely to guard against unjustified increases that could affect consumer living standards or economic stability.
Fuel distributors were quick to respond. INA, Croatia’s largest oil and gas company, welcomed the decision, calling it a positive step toward a sustainable, market-based energy sector. The company expects the change to boost market flexibility and drive further investment and service improvements. INA also commended the Government for striking a balance between protecting consumers and promoting fair competition.
