Government weights new fuel price cap adjustment

Prime Minister Andrej Plenković said today that the government will consider another adjustment of fuel price caps on Monday.

He added that a broader legislative process is underway to introduce additional mechanisms to mitigate disruptions in energy markets.

This includes amendments to the VAT law that would allow the government to adjust VAT rates on petroleum products in extraordinary circumstances.

“The debate on amendments to the Value Added Tax Act is expected to take place in the Croatian Parliament around April 27, with adoption planned for April 30,” Plenković said after a meeting of the Croatian Democratic Union leadership in Zagreb on Wednesday.

“This is an additional tool that can help reduce price pressures on citizens and the economy. It will be used only if necessary; for now, we are proposing it to establish a legal basis,” he added.

The prime minister also noted that Croatia has submitted a request to the European Commission to reduce the EU portion of excise duties, which is currently under consideration.

He announced that the government will again decide on petroleum product prices on Monday. Since the onset of the latest energy crisis, the government has set maximum retail prices for non-premium gasoline, diesel, and agricultural diesel every two weeks.