Government unveils €450M package to curb fuel price surge

Andrej Plenković’s government on Monday presented a new package of measures aimed at shielding consumers and businesses from rising energy costs driven by the war in the Middle East.

The government will cut excise duties and limit retailers’ profit margins to soften the impact of higher fuel prices. Despite the intervention, prices will still rise from midnight: Euro diesel will increase by 18 cents per litre, while Euro super will go up by 12 cents.

Economy Minister Ante Šušnjar said the measures reduced what would otherwise have been steeper increases—by 13 cents for diesel and 9 cents for petrol.

Agricultural diesel, which is exempt from excise tax, will rise by 20 cents. To offset the impact, the government has earmarked €28 million in aid for farmers and fishers.

To prevent supply shortages, fuel price caps will not apply to motorway service stations. Authorities reported a surge in demand in recent days, with drivers from neighboring countries crossing the border to fill up.

“We saw significant pressure at these pumps. Last night, one retailer sold more than 5 million litrers of fuel,” Šušnjar said, adding that motorway price deregulation aims to discourage so-called “fuel tourism.”

Prime Minister Plenković said ensuring stable supply remains the government’s top priority.

“We will make maximum efforts to secure sufficient supply. At the same time, we will try to ease broader inflationary pressures and prevent spillover effects across the economy,” he said.

The total value of the government’s support package is around €450 million.

Finance Minister Tomislav Ćorić said there is still room for further excise duty cuts if needed. Lowering VAT is also an option, though it would require legislative changes and is not currently under consideration.

Meanwhile, existing subsidies will be extended, keeping electricity and gas prices for households and small businesses unchanged until September.