The Government Will Further Reduce Excise Duties on Gasoline and Diesel

During a telephone session, the government made a decision to amend the regulation on the level of excise duties on energy products and electricity, as well as the regulation on determining the maximum retail prices of petroleum products in order to mitigate the rise in fuel prices.

Prime Minister Andrej Plenković announced at a press conference an additional reduction in excise duties on petroleum products and a reduction in the margin for petroleum product traders on gasoline, diesel, and blue diesel, stating that all these measures are being implemented to prevent an additional burden on citizens’ wallets.

– Thus, we have so far reduced excise duties from 3.86 kuna per liter to 3.06 kuna per liter for gasoline, and from 3.06 to 2.66 kuna per liter for diesel fuel, which means 80 and 40 lipa per liter, respectively; blue diesel, as we know, has no excise duty – said Plenković at the conference.

The new regulations complement those in force since March, when the government reduced excise duties on diesel and gasoline by 40 lipa per liter of unleaded motor gasoline and 20 lipa per liter of diesel fuel. Thus, with these new regulations adopted today, the excise duty on gasoline has been further reduced by another 40 lipa, as well as the excise duty on diesel by an additional 20 lipa.

The Prime Minister also announced at the conference that under the new regulation, the prices of petroleum products will change every 14 days, instead of every seven days as before, and the provisions of the new regulation will apply from Wednesday. The excise duty regulation will be in force for the next month, and after that, according to Plenković, the Government will conduct a situation assessment.

He also emphasized that the regulation further limits the margin for producers and distributors by an additional 10 lipa. Thus, the margin for gasoline and diesel fuels is reduced from 75 lipa to 65 lipa per liter, and for blue diesel from 50 to 40 lipa per liter.

Without government measures, diesel would cost 15.80 kuna per liter tomorrow, while citizens would have to pay 15.78 kuna per liter for gasoline and 10.87 kuna for blue diesel; with the regulation coming into effect, diesel will cost 13.08 kuna, gasoline 13.50 kuna, and blue diesel 9.45 kuna.

Currently, at most gas stations in Croatia, a liter of regular gasoline eurosuper 95 is sold for 13.86 kuna, while a liter of regular euro diesel is 22 lipa more expensive.