Croatia reintroduces fuel price caps as Iran war pushes oil market volatility

The Croatian government held an extraordinary session on Monday to reintroduce fuel price caps in response to instability in the Middle East and the ongoing war in Iran, which is affecting global oil markets.

The Croatian government has reintroduced fuel price regulation, with new maximum retail prices coming into force from Tuesday, 10 March, for a two-week period.

Officials confirmed that fuel prices will rise, but the measures will limit the increase for consumers.

Under the new regulated prices, basic petrol (Eurosuper) will cost €1.50 per litre, an increase of four cents compared with the current price.

Without the government’s intervention, the price would have reached €1.55 per litre, Prime Minister Andrej Plenković said.

Diesel (Eurodiesel) will increase by seven cents, bringing the new price to €1.55 per litre. Without the government measures, the price would have climbed to €1.72 per litre. The current price stands at €1.48 per litre.

Blue diesel, used by farmers and fishermen, will rise by nine cents to €0.89 per litre. Without price regulation, it would have cost €1.06 per litre.

Liquefied petroleum gas (LPG) will also see slight increases. The price for LPG in bottles will rise by two cents to €2.40 per kilogram, while LPG for tanks will increase by three cents to €1.70 per kilogram.

Higher-octane petrol and all premium fuels will continue to have freely formed market prices.

Alongside the price controls, the government has amended the regulation on excise duties for energy products and electricity.

For the period from 10 March to 23 March 2026, excise duty on diesel will be reduced to €386.13 per 1,000 litres, representing a €20 reduction per 1,000 litres, or €0.02 per litre.

The measure is expected to reduce state budget revenue from energy excise duties by around €1.95 million during the period.

The decision comes after a sharp spike in global oil prices following military strikes by the United States and Israel on Iran, which disrupted oil exports through the Strait of Hormuz.

Oil prices surged by more than 25% early on Monday, reaching their highest levels since July 2022.

Croatia has previously used price caps during periods of global market instability, with the measure designed to maintain economic stability and protect households from sharp increases in transport and energy costs.