HomeOilCroatia reduces diesel excise duty to limit retail price rise

Croatia reduces diesel excise duty to limit retail price rise

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Croatia has reduced diesel excise duty to absorb part of a rise in international fuel costs, limiting the increase passed on to motorists. Without the intervention, the retail diesel price was expected to rise by about €0.10 per litre. Economy Minister Ante Šušnjar said the tax cut should hold the increase to around €0.05–€0.06 per litre.

Šušnjar said the resulting retail price would remain slightly above €1.90 per litre. The government’s approach is aimed at cushioning consumers while keeping fuel supply in place. It also uses excise revenue as part of the immediate policy response.

Impact on subsidised blue diesel users

The measure provides less scope to protect users of subsidised blue diesel, which is already exempt from excise duty. As a result, the excise-duty reduction affects the broader retail market differently than it does for exempt categories. The government could consider further tax measures if prices continue to climb.

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