Šušnjar: The state protects households, citizens and the economy

Minister of the Economy Ante Šušnjar stated after today’s Government session, at which the regulation of the highest retail prices of fuel was reintroduced, that the Government is thus protecting households, citizens and the economy.

“These are interventions that drastically protect households, citizens and the economy,” said Ante Šušnjar.

He added that, for example, a price increase of 24 euro cents for diesel will not happen, but that fuel will increase by seven euro cents, which makes the price increase affordable.

According to him, the Government is limiting fuel prices according to a model similar to the one from July last year.

“Oil prices are rising, but diesel prices are rising even more than oil prices on world markets, so the structure of the intervention this time was slightly different, moderated and measured,” said Šušnjar.

He added that the Government is therefore preventing an increase in the price of diesel, which would be the highest and, if the price were to be formed freely, it would rise in price by 24 eurocents, and with the Government's intervention, it will increase by seven eurocents.

“So even in 15 days, when we pass the decree again, if there is a need, we will measure all the parameters that will be in force at that time and as dictated by the stock market, and in that way we will also structure the prices of other derivatives,” he announced.

As for blue diesel, he said that the Government's room for maneuver is somewhat narrower, given that the state has no excise duties, so it can only intervene in the premium and margin of energy entities that supply the market.

“We will continue to take care of the security of supply and make sure that we have enough derivatives for the market and that the prices are affordable,” said Šušnjar, noting that there have been disruptions and shortages in some neighboring countries.

It is difficult to predict further price movements

When asked about expectations for oil price movements, he replied that it is difficult to predict and that the Government will react if necessary and that it has a number of other measures at its disposal.

He said that suppliers have accepted the re-regulation well, without negative reactions.

Regarding a possible spring package of measures to help citizens and the economy, given the rise in energy prices, he replied that the measures, despite the initial idea of exiting them, could continue, which is still being discussed.

He said that the prices of energy sources that have a dominant influence on energy prices are currently being analyzed, so the measures may continue after April 1.

On Monday, the Government re-introduced a fuel price regulation. As a result, starting tomorrow and for the next two weeks, Eurosuper gasoline will cost 1.50 euros per liter. That is four cents more than now. Without the Government's measures, it would cost 1.55 euros. Eurodiesel is increasing in price by seven cents, to 1.55 euros per liter, and without the government's measures it would cost 1.72 euros. The current price is 1.48 euros per liter.

Blue diesel for farmers and fishermen will cost 89 cents, which is nine cents more than now, and if the price were not regulated it would cost 1.06 euros.

For gasoline with higher octane and all premium fuels, prices can still be formed freely.

Source: HRT