Croatia considers daily fuel price indexing to manage volatility

The Croatian government is considering the implementation of daily fuel price indexing to better manage price volatility and curb rapid increases. Economic Minister Ante Susnjar stated that the current system allows stock market fluctuations to accumulate over several days, which can result in sudden, larger price swings at the pump. By moving to daily pricing, retail prices would more closely and immediately reflect global market trends.

In addition to daily indexing, the government is exploring other measures to mitigate rising costs, such as further reductions in excise taxes and the application of a floating VAT. The Croatian parliament has previously authorized the cabinet to reduce the VAT rate on petroleum products by up to ten percentage points in the event of an energy market emergency.

Currently, Croatia utilizes a system where maximum retail prices are set in seven-day intervals. Under the latest regulations effective as of Tuesday, gasoline is priced at 1.74 euros per liter, diesel at 1.91 euros, and agricultural blue diesel at 1.50 euros. These rates are scheduled to remain in effect until September 28. Minister Susnjar emphasized that while controlling prices is a priority, the government must also ensure supply security and avoid excessive intervention that could jeopardize availability.