Government to Cap Rising Croatian Fuel Prices Again?

Lauren Simmonds

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As Poslovni Dnevnik writes, the government is set to compile a new package of measures to reduce the impact of rising energy prices on people if prices continue to rise, Prime Minister Andrej Plenkovic announced on Wednesday.

”In the case of price increases, in addition to limiting Croatian fuel prices, we’ll raise the fees provided to socially disadvantaged households, and when it comes to the price of electricity and gas, we’re going to be relying on HEP, which can take over and reduce the impact on people and households,” announced Plenkovic in response to a question on the matter asked by Mirela Ahmetovic (SDP).

As the third element, PM Plenkovic mentioned VAT, which amounts to 13 percent for electricity and 25 percent for gas. He explained that the rise in energy prices was caused by supply disruptions, the ongoing disruption as a result of the coronavirus pandemic and extremely high demand.

“Households across the Republic of Croatia haven’t yet seen an increase in electricity prices and will not experience them until April the 1st, and the same is true with the price of gas,” he assured.

Earlier on Wednesday, he announced that the state could step in and limit Croatian fuel prices again, if prices continue to rise next week.

When it comes to the price of Croatian fuel prices, the government limited the price to approximately 11 kuna just three months ago and kept that price for a period of two months, thus avoiding a blow to driver’s wallets and bank accounts.

“After that, we left things to the market, and yet we noticed that the current fuel prices are higher once again. If we have an estimate that the price will continue to rise next week, we will once again step in and place a cap on Croatian fuel prices, with the exception of premiums,” concluded Plenkovic.

For more, check out our dedicated politics section.

 

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