Croatian government caps retail price of petrol and diesel

The government passed a decree capping the retail price of petrol to 11.10 kuna (€1.48) per litre and the price of diesel to 11.00 kuna (€1.46) per litre for the next 30 days. [shutterstock/BERMIX STUDIO]

The government passed a decree capping the retail price of petrol to 11.10 kuna (€1.48) per litre and the price of diesel to 11.00 kuna (€1.46) per litre for the next 30 days.

This is a reduction of about 30 lipas (one kuna has 100 lipas) per litre. Most oil companies and distributors immediately complied with the decision while the decree enters into force on Saturday (16 October).

Prime Minister Andrej Plenković said that the move aimed to protect consumers.

“With regard to the current economic situation, the unpredictability of oil prices on the world markets and the impact of oil prices on the overall economic activity and the people’s standard of living, with an aim to ensure further economic recovery, we decided to use an opportunity [in the fuel price law] to stabilise the prices of petrol and diesel for a period of 30 days,” Plenkovic said during a weekly cabinet meeting.

Economy Minister Tomislav Ćorić said that determining the highest retail price of oil products should not jeopardise distributors because there is room for them to reduce their margin, adding that there haven’t been any serious talks with distributors in this regard.

He said that the distributors would feel the price reduction the most, and it will leave a significant mark in the state budget as revenue from Value Added Tax will be lower.

Asked whether the regulation could jeopardise distributors, Ćorić said that it should not. “Even though I believe that in the next few days, some will be very agile in the debate about whether the stabilisation or reduction in price should primarily have resulted from reduced excise taxes or a lower VAT. We believe that at the moment, that isn’t necessary,” he said.

(Željko Trkanjec | EURACTIV.hr)

Subscribe to our newsletters

Subscribe