Gov't locks margin on petroleum products, temporarily reduces fuel excise duties

The government on Monday 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, and if the government had not intervened with these decisions, the prices would have been HRK 13.71, HRK 13.28 and HRK 8.81 respectively, Prime Minister Andrej PLenković told his cabinet at the start of its session on Monday.

At midnight today, the capping of fuel prices expires and that measure will not be extended as in that scenario many distributors would have faced losses, and consequently many filling stations would have been shut, said the PM.

Therefore we opted for locking the total margin on diesel and gasoline to 0.75 kuna per litre, and 0.50 kuna per litre of blue-dyed diesel, he explained.

Amendments to legislation on excise duties will 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.

This is our contribution to lessening the impact on the standards of our citizens, and budget revenues from energy excise duties will be cut by HRK 150 million, Plenković said.

On Friday, global benchmark Brent crude rose to $120 a barrel, and this prompted the Plenković cabinet to make the decisions regulating fuel prices in Croatia.

Text: Hina

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