18:25 / 04.07.2022.

Author: Katja Miličić

Government extends motor fuel price cap for another 14 days

Fuel prices will remain the same for another 2 weeks

Fuel prices will remain the same for another 2 weeks

Foto: Lovro Domitrovic / PIXSELL

The government has extended the cap on motor fuel prices for another two weeks to help consumers cope with skyrocketing fuel prices. The current cap applies to all filling stations except those on the highways. 

The government's latest measure limits both retail and wholesale prices and keeps excise taxes at the current reduced level.

"This is how we can help the economy and workers. We can also make sure we have enough supply and help small distributors," said Prime Minister Andrej Plenković.

Fuel prices outside of the highways will remain the same. Prices at highway filling stations will reflect the market price, which is expected to drop very modestly.

The government has also capped wholesale prices in addition to the existing retail cap.

"The news is that we have also limited wholesale prices for the next two weeks so that major retailers can carry more of the burden than small sellers," explained Economy Minister Davor Filipović.

Small fuel retailers have said they will have to close their filling stations because they are accumulating huge losses due to the price caps. The caps on wholesale prices will only lead to slightly smaller losses, they say. Armando Miljevac, the head of the Association of Small Fuel Distributors, says many members of his group will have to shut down.

"Around 150 filling stations will have to close because they are out of fuel and don't have the money to buy more at current prices," said Miljevac.

Minister Filipović takes some issue with the arguments presented by small retailers. He says that the new measure will shift most of the burden on to INA, taking some of the pressure of small sellers, who he says merely won't be making as much as they were hoping to make. He pointed out that in 2021, 40 small retailers reported profits of 133 million kuna.

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