Government cuts diesel tax again as new fuel prices announced

The Croatian Government has announced new regulated fuel prices, with petrol, diesel and other petroleum products set to become more expensive from Tuesday, 22 September.

The Government has intervened again to limit the increase, cutting excise duty on diesel by a further €0.03 per litre.

The decision was taken at the 206th telephone session of the Croatian Government on Monday as part of measures to regulate fuel prices.

With the latest reduction, diesel excise duties have been lowered by €0.10 per litre below the minimum level set under the relevant EU directive, with the move approved by the European Commission.

The premium applied by energy companies remains unchanged compared with the previous seven-day period.

Under Croatia’s regulated pricing system, maximum retail fuel prices are calculated using a formula based on the basic price of fossil fuels during the previous seven-day period, together with regulated maximum premiums and applicable excise duties.

The new prices, which will apply for seven days from 22 September, are:

• Petrol: €1.74 per litre, up €0.01

• Diesel: €1.91 per litre, up €0.06

• Blue diesel: €1.50 per litre, up €0.10

• LPG for large tanks: €1.41 per kg, up €0.03

• LPG in bottles: €1.99 per kg, up €0.04

The Government said the measures are intended to prevent a significantly larger increase in retail prices.

Without the Government’s measures, and if retail prices were allowed to form freely based on energy companies’ premiums and the excise duties applicable before the introduction of the first government regulations, prices would be considerably higher.

In that scenario, petrol would reach €1.95 per litre and diesel €2.26 per litre.

The corresponding prices would be €1.60 per litre for blue diesel, €1.52 per kg for LPG in large tanks and €2.23 per kg for bottled LPG.

The latest regulation takes effect on 22 September and will remain in force for seven days.