Croatia raises fuel prices while extending tax cuts

The news in Croatian

1. poljoprivreda  (f.)
   Djelatnost uzgoja biljaka i životinja radi proizvodnje hrane i sirovina na zemljištu. ↩︎
2. štititi
   Čuvati nekoga ili nešto od opasnosti, štete ili nepravde. ↩︎
3. smanjiti
   Učiniti da nešto postane manje po količini, veličini ili jačini. ↩︎
4. porez  (m.)
   Novac koji građani i tvrtke moraju plaćati državi. ↩︎
5. padati
   Kretati se prema dolje, postajati manji po vrijednosti, količini ili razini. ↩︎
6. sukob  (m.)
   Situacija u kojoj se dvije ili više strana snažno ne slažu ili se bore jedna protiv druge. ↩︎
7. plavi
   koji ima boju kao nebo po vedrom danu ili kao more; u kontekstu goriva označuje posebno, subvencionirano dizelsko gorivo ↩︎
8. spremnik  (m.)
   posuda ili zatvoren prostor u koji se nešto stavlja, pohranjuje ili u kojem se nešto čuva ↩︎
9. utjecaj  (m.)
   mogućnost da se svojim djelovanjem promijeni tuđe mišljenje, ponašanje ili neki događaj ↩︎
10. ovisiti
    biti određen ili uvjetovan nečim; ne moći se dogoditi bez nečega drugoga ↩︎
11. situacija  (f.)
    stanje u kojem se nešto nalazi u određenom trenutku; okolnosti oko nekog događaja ↩︎
12. pravilo  (n.)
    određena uputa ili dogovoreno načelo koje govori kako se treba ponašati ili što se smije, a što ne smije raditi ↩︎

Translation

Text comprehension

Question 1: According to the text, which fuel prices in Croatia will rise for the next two weeks?

Question 2: Why does the government say it is taking these actions with fuel prices and tax cuts?

Vocabulary

Croatian	English
poljoprivreda  (f.)	agriculture
štititi	to protect
smanjiti	to reduce
porez  (m.)	tax
padati	to fall
sukob  (m.)	conflict

Read the full story

Croatia has announced new fuel prices that will apply for the next two weeks, while the government says it is still trying to protect consumers from even higher costs caused by international tensions.

From Tuesday, the price of basic petrol will rise by €0.04 per litre to €1.66, and diesel will increase by €0.12 per litre to €1.85. The special subsidised fuel used mainly in agriculture and fisheries, known in Croatian as “plavi dizel” (blue diesel), will go up by €0.17 to €1.36 per litre.

While liquid fuels are becoming more expensive, the price of liquefied petroleum gas (LPG) is falling slightly. Gas from large tanks will cost €1.94 per kilogram, which is €0.05 less, and gas in bottles will be reduced by €0.06 to €2.51 per kilogram.

The government adopted the changes at a telephone cabinet session. According to officials, the decision is part of a continuing policy of lowering excise duties (special fuel taxes) and setting maximum retail prices for oil products. These measures are regularly reviewed and currently apply for a two‑week period until 20 April.

Ministers link the latest increases mainly to external factors, especially the energy crisis connected with the conflict involving Iran and the partial blockade of the Strait of Hormuz, a narrow waterway through which a significant share of the world’s oil and some important metals such as aluminium are transported. They argue that Croatia, as a small importer, has limited influence on such global developments.

Environment and Green Transition Minister Marija Vučković stated that without government intervention, prices at the pump would be even higher. Government figures suggest that a completely free market, with no temporary limits on company margins or reduced excise duties, would have led to a petrol price of around €1.76 per litre, diesel at about €2.06, and blue diesel at about €1.42. LPG for tanks and bottles would also be noticeably more expensive.

For blue diesel, which is important for Croatian farmers and fishermen, the minister explained that there is no excise duty on this product, so the state has less room to act compared with regular fuels. According to her, the current price still includes a smaller premium than would result from the standard pricing formula, which she presents as evidence that the government is intervening where it can.

The authorities say their priorities are to keep energy as affordable as possible and to ensure security of supply during a period of global uncertainty. At the same time, they emphasise the need to respect European Union rules on minimum excise levels and to take into account the profit margins of fuel retailers, which limits how far national measures can go.

Small and medium‑sized fuel distributors have warned that some filling stations, especially independent ones, may close because regulated prices and limited margins make their business less profitable. Minister Vučković responded that the government had already included this sector in its tenth package of anti‑crisis measures and promised ongoing social dialogue and possible additional steps. However, details of any future support were not specified in the latest announcements.

Reporters also raised concerns about tourists benefiting from subsidised fuel during the summer season. The minister said that Croatia had created a difference between prices on motorways and those at other petrol stations, but did not provide exact figures. The aim, she suggested, is to balance support for residents and domestic businesses with the realities of a tourism‑dependent economy.

Asked whether Croatia might soon reach €2 per litre, closer to some European averages, Vučković said it was difficult to predict because of the “very challenging” geopolitical context and ongoing conflicts. She argued that the economic consequences of these events cannot be stopped suddenly, and said the government is combining short‑term relief with long‑term resilience measures aimed at households, industry and services.

In addition to energy, the minister pointed to wider risks for agriculture and construction. She mentioned possible disruptions in markets for natural gas, ammonia and nitrogen fertilisers, as well as metals shipped through the Strait of Hormuz. These factors could affect food production, building costs and other parts of the Croatian economy.

On the question of reducing VAT (value‑added tax) on fuel, the government currently sees no need to change the rate. At the same time, Vučković confirmed that there is still “some room” at European excise level for potential further cuts, and that this is being discussed by finance ministers at EU level. She also noted that Croatia is already close to the minimum excise threshold for diesel allowed under European regulations.

Different Croatian media outlets highlight different aspects of the situation: some stress the burden on drivers and especially on users of blue diesel, others focus on the limits of government policy under EU rules, while government representatives underline that, despite the latest increases, prices are lower than they would be without intervention. For international observers and language learners, the case illustrates how a small EU member state tries to manage domestic fuel prices in the face of global energy shocks and regulatory constraints.

Info: ‘Croatian Learner News’ is a service from ‘Let’s Learn Croatian’, a language school offering online courses in Croatian, including Croatian for beginners, to help learners develop their skills at their own pace.