Government tries to reassure consumers and businesses as global energy prices rise

The war in the Middle East is pushing up energy prices and creating fresh uncertainty for the global economy, with Croatia now taking steps to shield consumers and businesses from the impact.

On Monday, the government revised fuel price caps and rolled out a new package of measures aimed at easing the burden of rising energy costs.

Prime Minister Andrej Plenković said the government had acted decisively to prevent disruptions.

“We have shown leadership, determination, and a willingness to act quickly and comprehensively. I don’t expect we’ll see the kind of lines that formed ahead of previous price changes,” he said.

Despite the measures, smaller fuel retailers warn that ongoing price volatility could lead to losses. Economy Minister Ante Šušnjar sought to calm those concerns, citing signals from suppliers.

“Based on what I’ve heard from wholesale suppliers, prices have actually fallen further, which should allow smaller retailers to continue operating normally,” he said.

At the same time, supply pressures are emerging elsewhere in the system. Goran Pleše, managing director of INA’s refinery business, said Croatia has sufficient fuel stocks, but warned that a surge in demand is putting strain on fuel stations.

Beyond fuel, rising energy prices are also affecting agriculture. While the supply of mineral fertilizers remains stable, higher natural gas costs have pushed prices upward.

Miroslav Skalicki, a board member at fertilizer maker Petrokemija, confirmed stable supply levels, but Mato Brlošić from the Chamber of Agriculture said farmers are already feeling the impact.

“The increase in fertilizer prices has been extreme. It’s understandable that newly produced goods are more expensive, but some companies are also raising prices on stock that has been sitting in warehouses for months,” Brlošić said.

The knock-on effect on food prices remains a key concern. According to Goran Šaravanja, cheif economist at the Croatian Chamber of Commerce, much will depend on how the geopolitical situation evolves.

“If the situation stabilizes and a ceasefire is reached, we shouldn’t see any major or long-term increase in prices,” he said.

Šaravanja added that the government’s measures are timely and well targeted, and that further steps are likely if conditions worsen.