The government adopted a decree capping the retail price of gasoline at 11.10 kuna (â¬ 1.48) per liter and the price of diesel at 11.00 kuna (â¬ 1.46) per liter for the next 30 days.
This is a reduction of about 30 lipa (one kuna to 100 lipa) per liter. Most oil companies and distributors immediately complied with the ruling as the decree goes into effect on Saturday, October 16.
Prime Minister Andrej PlenkoviÄ said the move was aimed at protecting consumers.
“With regard to the current economic situation, the unpredictability of oil prices in world markets and the impact of oil prices on overall economic activity and the standard of living of the people, with the aim of ensuring a new economic recovery, we decided to use an opportunity [in the fuel price law] to stabilize gasoline and diesel prices for a period of 30 days, âPlenkovic said at a weekly cabinet meeting.
Economy Minister Tomislav ÄoriÄ said that determining the highest retail price of petroleum products should not jeopardize distributors as they have the option of reducing their margin, adding that there is no had serious discussions with distributors in this regard.
He said distributors would feel the reduction in prices the most, and it would leave a significant mark on the state budget as value-added tax revenues would be lower.
When asked if the regulations could endanger distributors, ÄoriÄ replied that he should not. âAlthough I think that in the coming days, some will be very nimble in the debate on whether the stabilization or the fall in prices should have mainly resulted from a cut in excise duties or a fall in VAT. We believe that at the moment this is not necessary, âhe said.
(Å½eljko Trkanjec | EURACTIV.hr)