Šušjnar: Croatia has deep reserves

Energy prices remain high as Iran continues to block the Strait of Hormuz to ships linked to the United States or Israel. President Trump has given Iran a 48 deadline to open the strait or face attacks on its power plants. Tehran has said it will respond by taking out energy infrastructure and desalination plants throughout the region.

Ahead of Monday’s session of Government, a meeting of the inner cabinet was held on Sunday to address disruptions in the energy market caused by the Israeli-American attack on Iran. At the meeting it was agreed that Government will once again cap fuel prices. Economy Minister Ante Šušnjar: “The Government will intervene significantly and forego its excise fees in order to reduce the price pressure that would happen if we allowed true market price discovery.”

Additionally, subsidy measures on electricity and gas prices will remain in force, while a specific measure is being introduced to prevent so-called petrol tourism, meaning the arrival of citizens from neighboring countries to buy fuel in Croatia.

“We have seen increased pressure at gas stations in areas bordering with neighboring countries, many of which have run out of energy products,” Minister Šušnjar said.

The minister went on to say that Government’s primary focus was security of supply, which currently is not in doubt. He added that if everything were to come to a complete stop Croatia could continue to function for a very long time, noting that it has plenty of reserves. He therefore called on citizens, especially farmers, to not stockpile energy products: “We have to be cognizant of the fact that we are facing the biggest energy crisis in history. So, I'm calling on citizens to not stockpile and to avoid irrational purchases of energy products, because in some areas we have seen a ten-fold increase in the sale of agricultural diesel. There is no need for this; Government will ensure that fuel is affordable for farmers and fishermen in the future.”

On social media Prime Minister Andrej Plenković noted that government's goal is to guarantee security of supply and the lowest possible price of electricity, gas and fuel for households and to ensure the normal functioning of the economy.

Source: HRT