Montenegro reinstates full fuel excise as Croatia grapples with rising inflation

The Montenegrin government reversed a temporary cut and restored the full excise duty on euro‑diesel to 44 cents per litre and raised the excise on two gasoline grades to 52.15 cents per litre. The change was announced just before the deadline for the new fuel‑price calculation, meaning diesel prices fell only three cents instead of the expected twelve, leaving the retail price at €1.66 per litre. The move increases state revenue through both the excise and the 21 % VAT applied to it, and has drawn criticism over the timing and transparency of the decision.

In Croatia, inflation has surged again due to the Middle‑East conflict and higher energy prices. The government introduced another anti‑inflation package aimed at tempering price growth without harming GDP. Analysts note that domestic demand, strong employment, rising wages, and tourism are driving price pressure, while the European Central Bank’s monetary policy may have limited impact on Croatia’s inflation gap. The discussion emphasizes the need for structural reforms to boost competition and productivity.