Ćorić: Government's measures should buffer price hike

Economy and Sustainable Development Minister Tomislav Ćorić said on Monday that the government's measures presented today should lessen the blow of the fuel price hike to Croatian citizens.

He underscored that today's decisions are aimed at enabling undisturbed fuel supplies and buffering the price hikes that have occurred due to the increased price of energy on the global and regional markets.

We are witnessing an escalation in prices of all energy sources on the markets and the price of electricity on the reference market has reached €540 per megawatt-hour whereas last year it was €63 and the year before that €24, said the minister

Furthermore, yesterday's gas price on the reference TTF market amounted to €320 per megawatt-hour and last year it was €18. He reiterated that the price of fuel passed $120 per barrel this morning and that nobody can foresee how long the escalation in prices will continue.

The government's new measures should buffer the blow. According to Ćorić, prices could calm down if the war in Ukraine were to calm down.

Today's price caps refer only to base fuels while premium fuels will still be formed according to market principles.

Earlier on Monday, the government decided to lock margins on petroleum product transactions and to temporarily reduce excise duties on diesel and gasoline in order to lower fuel prices.

As a result, diesel should cost 12.53 kuna per litre as of Tuesday, gasoline will cost HRK 12.19 per litre, while blue-dyed diesel will cost HRK 8.04 per litre, Prime Minister Plenković said.

The total margin on diesel and gasoline will be HRK 0.75 per litre and 0.50 per litre for blue-dyed diesel.

The government also decided to reduce excise duties by HRK 0.20 per litre of unleaded gasoline for 90 days, and this reduction will be HRK 0.40 per litre of diesel.

Price of electricity is tenable 

Asked whether the price of electricity that the national provider HEP and government decided on two weeks ago would be viable after 1 April seeing that HEP has started sending consumers notices of new prices, Ćorić answered affirmatively. He added that HEP is covering the majority of the needs on the Croatian market and that part of that is being produced from renewables.

With regard to Russian companies doing business in Croatia, he said that the Đuro Đaković TEP is the most glaring example of a possible problematic situation. Last week already, the ministry's representatives were in contact with the company's management and other institutions. That is a respectable company with 860 employees and 150 to 200 associates who are entirely directed to the European market.

Reporters were interested in whether Russian investments in Croatia would be frozen with Ćorić saying that companies that export to Russia are recording poorer results considering the fact that supply chains have been disrupted.

Text: Hina

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