The Croatian Government has taken decisive action to mitigate the impact of escalating tensions in the Middle East on its domestic fuel market. In light of recent conflicts, particularly involving Iran and disruptions near the Strait of Hormuz, there has been a significant spike in global crude oil prices, which have reached between $105 and $107 per barrel. This increase, amounting to approximately 50% within a mere ten days, has prompted an emergency session led by Prime Minister Andrej Plenković.
To safeguard consumers from potential financial strain due to soaring fuel costs, the government has introduced new regulatory measures aimed at capping retail fuel prices. This intervention includes revisions to two critical regulations: one that governs the maximum retail prices for petroleum products and another concerning excise duties applicable to energy products and electricity. These adjustments are intended to maintain fuel prices well below prevailing market rates.
Forecasts from the Croatian Hydrocarbon Agency had indicated that without government intervention, diesel prices could have surged by €0.24 per liter, while petrol was expected to rise by approximately €0.09 per liter. Following the government’s announcement, eurodiesel prices will be capped at €1.55 per liter—down from an anticipated €1.72—and petrol will be limited to €1.50 per liter instead of the projected €1.55.
Officials emphasize that these measures are crucial for shielding consumers from abrupt market fluctuations and reducing the broader economic repercussions associated with rising oil prices globally. The implementation of these price caps is projected to prevent substantial increases in fuel expenses, which could have added around €12 to a 50-liter diesel tank and approximately €4.5 for the equivalent volume of petrol.
