Croatia has cut diesel excise duty to absorb part of a rise in international fuel costs and limit the increase passed on to motorists. The policy is intended to reduce pressure on retail prices for diesel. Economy Minister Ante Šušnjar said the tax change is designed to affect how much of the cost increase reaches consumers.
Before the intervention, the retail diesel price was expected to rise by about €0.10 per litre. Šušnjar said the excise duty reduction should hold the increase to around €0.05–€0.06 per litre. He added that the resulting price would remain slightly above €1.90 per litre.
Impact on subsidised blue diesel users
The measure provides less scope to protect users of subsidised blue diesel. Blue diesel is already exempt from excise duty, limiting the effect of the new cut for that group. The government’s approach therefore focuses primarily on broader retail pricing.
Potential follow-up measures and use of excise revenue
The government could consider additional tax measures if fuel prices continue to climb. Its immediate approach is to use excise revenue to cushion consumers while maintaining fuel supply. The policy is framed as a short-term buffer linked to international cost movements.
