Government cuts fuel taxes at the last minute to hold petrol and diesel prices steady

Croatia’s government made a last-minute cut to fuel taxes and premiums to prevent higher petrol and diesel prices after oil and petroleum product prices rose sharply on world markets over the past week.

The government reduced excise duty on petrol by 2.5 cents per liter and on diesel by 9 cents. It also cut the premium for both fuels by 2 cents per liter, with the measures applying for seven days. Without the intervention, petrol would have risen by 6 cents and diesel by 14 cents under the previous system.

From Sept. 8, the maximum retail price will remain at 1.67 euros per liter for petrol and 1.79 euros for diesel, matching the current prices. Blue diesel, however, will rise by 13 cents to 1.34 euros per liter. Liquefied petroleum gas for tanks will increase by 8 cents to 1.33 euros per kilogram, while bottled LPG will rise by 7 cents to 1.90 euros per kilogram.

The government said that without its measures, petrol would cost 1.88 euros per liter and diesel 2.10 euros. Blue diesel would reach 1.44 euros per liter, tank LPG 1.44 euros per kilogram and bottled LPG 2.14 euros per kilogram.

The new prices were adopted at a government telephone session and will remain in force for the next seven days. Croatia retained its regulated system, under which maximum retail prices are calculated from the basic market fuel price over the previous seven-day period, alongside legally prescribed maximum premiums.