Ćorić: New govt directive abolishing fuel mixing mandate

The government will adopt a directive on Thursday to buffer the fuel price hike by doing away with the obligation for distributors to mix biofuel with diesel and petrol until the end of the year, Minister of Economy and Sustainable Development Tomislav Ćorić said on Tuesday.

Asked what the government's next move would be after the price of fuel jumped again on Tuesday, Ćorić said that the "government will buffer the price hike by changing certain directives at the cabinet meeting on Thursday," which "primarily refers to the mixing in of biofuels."

The minister believes it will enable distributors to reduce prices by about HRK 0.50.

He added that the amended directive, which should enter into force next week, would be in force until the end of the year.

Currently, distributors are obliged to mix a certain quantity of biofuel into diesel and petrol and if they don't, they are penalised pursuant to the relevant EU directives and the EU's green policy.

"In light of the truly extraordinary circumstances regarding the energy market, we have opted for this response... and decided to reduce the penalties and obligations as much as possible," Ćorić said.

According to the minister, the formula to calculate the price of fuel "will result in lower prices in the weeks and months to come."

We are not considering reducing VAT on fuel for the time being, he added.

Asked how the government intends to assist the road transport sector, Ćorić said that the announced amendment of directives was a step in that direction.

As of Tuesday, Eurosuper 95 is sold at most petrol stations in Croatia at a price of HRK 13 per litre, which is HRK 0.82 more than on Monday, the price of Eurodiesel has gone up by HRK 1.40 while premium diesel fuels cost more than HRK 15 per litre.

According to data on the website of the Economy and Sustainable Development Ministry and the cijenegoriva.info portal, the price of Eurosuper 95 at petrol stations operated by Ina, Petrol, Crodux, Lukoil and some other distributors is HRK 13 per litre, having gone up from HRK 12.18 per litre.

The price increase of Eurodiesel is slightly higher, and at most petrol stations it is sold at HRK 13.91 per litre, having previously been sold at HRK 12.51 per litre. Premium diesel fuels are sold at more than HRK 15 per litre.

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

As a result, the total margin on diesel and petrol was locked at HRK 0.75 per litre, and at HRK 0.50 per litre for blue-dyed diesel.

Amendments to legislation on excise duties have reduced excise duties by HRK 0.20 per litre of unleaded gasoline for 90 days, and the reduction for diesel is HRK 0.40 per litre.

The government's assessment was that based on those measures, the price growth of Eurosuper and Eurodiesel would be between HRK 0.80 and HRK 1.20 per litre, while without the measures the real market increase in prices would have been around HRK 2.

Text: HINA

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