This is the sixth week in a row that fuel prices in Croatia have decreased. According to the information of cijenegoriva.info website, a litre of Eurosuper 95 is now 21 lipa cheaper than yesterday, which is its lowest level since mid-February of this year. In the last six weeks, a litre of Eurosuper 95 has decreased in price by more than a kuna, which makes an average 50-litre tank 51 kuna cheaper. The price is currently 9.36 or 9.37 kuna, depending on the oil company, reports Index.hr on August 25, 2015.
The price of Eurodiesel fell by 13 lipa per litre. According to cijenegoriva.info, Eurodiesel can be bought for around 8.53 kuna, which is its lowest price since early February. In the last seven weeks, a 50-litre tank is 38.5 kuna cheaper than before.
According to oil companies, this trend is a result of the falling prices of fuels on the Mediterranean market and the falling exchange rate of dollar against kuna. The dollar exchange rate fell to just 6.58 kuna (for example, in early July the rate was over seven kuna).
Due to the falling share prices on Chinese stock markets and the expected decline in demand, oil prices fell by as much as four percent and dropped to the lowest level since March 2009. China is the largest consumer of energy in the world, and when its economy slows down, it consumes less energy. Lower demand means lower prices as well, and that is precisely what is happening with the price of oil these days. A barrel of oil in the European market costs slightly above 43 dollars, while on the US market its price fell below 39 dollars.
Despite low prices, oil-exporting countries do not want to cut production because they fear they would lose their market share. Oil companies are reducing investments, but analysts say they will gain in the long term. “The decline in energy prices will affect consumers and their pockets. So the medium-term perspective for the majority of consumers and investors is actually pretty good”, analysts say.
The price of oil is expected to rise in the long run, but most analysts believe that it will take several more years for the price of oil to reach 90 or 100 dollars a barrel, a level at which it was before the prices started to fall.