Fuel prices in Croatia are set to rise sharply from Tuesday due to escalating conflict in the Middle East, local media reported on Monday.
Diesel is expected to increase by 24 euro cents per litre, adding around €12 to a full tank, while gasoline could rise by 9 euro cents, or roughly €4.50 per tank, according to Croatian public broadcaster HRT.
The government is holding an emergency meeting to discuss potential interventions, including price regulation measures to ease the impact on consumers.
Paško Burnać, an economist at the University of Split, said the current energy crisis will have global repercussions, particularly affecting East Asian countries such as China, Japan, South Korea, and Taiwan. “Even though Croatia sources most of its oil from Kazakhstan and Afghanistan and natural gas from the United States, we will not be immune,” he said.
Burnać called for tax reductions rather than capping retail margins, recalling a similar situation at the start of the Ukraine war when the government froze trade margins. “Almost 50% of fuel prices are made up of excise duties and VAT. Retail margins are three times smaller than excise contributions,” he said.
The economist warned that a 24-cent increase in fuel prices could ripple through the market within weeks, pushing up the cost of goods. “If the government wants to keep inflation at a manageable level, it must act on fuel pricing,” Burnać added.
He also noted that the global economy remains fragile. “Developments in the EU will inevitably affect Croatia,” he said.
Burnać said the economic fallout could ultimately influence the pace and outcome of the conflict. “The tempo of the war and its conclusion will depend on economic conditions, especially in the United States and on Wall Street. Heightened market reactions, which are likely if this continues for more than a month, could create pressure that brings the conflict closer to an end. It is difficult to predict timing at this stage,” he said.