Vučković: ‘Without the Government’s reaction, fuel prices would be significantly higher’

– We continue the policy of reducing excise duties and determining the maximum price of petroleum products. If there were no reaction from the Government, the prices would be, as we all know, significantly higher – pointed out Vučković in a statement to journalists after the phone session of the Government.

However, she added, at this moment, it is important to keep the price as low or stable as possible in relation to certain external events that we cannot influence, but also to have a secure supply of oil derivatives and all energy in Croatia.

Starting Tuesday, basic gasoline will increase in price by four cents per liter, and diesel by 12 cents per liter. Thus, starting tomorrow, a liter of gasoline will cost 1.66 euros, and diesel 1.85 euros per liter. The price of blue diesel increases by 17 cents to 1.36 euros per liter. The price of gas for tanks will be 1.94 euros per kilogram, which is a reduction of five cents, and the price of gas in bottles has also been reduced by 6 cents and will amount to 2.51 euros per kilogram.

Asked about the price of blue diesel, which has a noticeable increase, Vučković explained that there are no excise taxes with him, so the possible reactions of the Government are “significantly smaller, lower in scope”.

– However, the price is still a bit lower than it would have been without the government’s reaction. And the premium, in relation to the formula and in relation to the decree on determining the maximum price of oil derivatives, is by far the lowest, which shows that the Government is still reacting – she pointed out.

When asked what will happen to small distributors, considering that many say they are closing because it is not profitable for them, the minister said that in the tenth package of measures, the Government showed that it is taking into account that segment of the economy as well.

– In every part of the economy, it is necessary to maintain small and medium-sized enterprises because they represent the quota; of any healthy and perspective economy. We had one measure, we have it in force, and the relevant ministers and the Government will certainly continue to keep track of them, hold discussions, social dialogue and take appropriate measures as necessary – she said.

The economic consequences cannot be stopped at once; it’s not just about energy

Asked how the Government intends to regulate fuel prices, considering that tourists also buy subsidized fuel, the minister explained that the Government made a certain difference in relation to the fuel prices that apply on highways.

Given that fuel prices rise every two weeks, journalists asked the minister how close we are to approaching the European average and paying two euros per liter. The wolves&ccacute; she said that it is difficult to predict what will happen in view of the very challenging geopolitical context and war events, but also that it is difficult to expect that the economic consequences can be stopped at once.

The Government is keeping track of all of this, she added, which is why it has short-term measures, but also measures to strengthen resilience that are aimed at citizens, small and large businesses, heavy industry and everyone who can feel the consequences of such events.

She added that it is not only energy, although it is the most important, that agriculture and fisheries will also be taken into account.

– When we talk about agriculture, we should also mention the movement of gas, ammonia, the impact that may result from disruptions in the market for heavy fertilizers. There are also some metals – the Strait of Hormuz is a passage for large quantities of very important metals, for example aluminum, which means that we have to take into account the construction industry and others – she stated.

Asked if the government had discussed reducing the VAT, the minister said that they do not see the need for it at the moment.

Journalists also asked her what about European excise duties, considering that the Minister of Finance said that there is additional room for reducing fuel prices, and Vučković confirmed that “such a possibility should be considered”, that the competent finance ministers are discussing it, and that the Croatian ministry is also active.

When asked whether the government has exhausted all excise duties on Eurodiesel, the minister confirmed that “we are practically at the limit set by European regulations”.