Prices of petrol and diesel keep creeping upwards at most petrol stations in Croatia, inching up above 10 kuna (€1.35) per litre on Tuesday - a level considered a psychological limit likely to hit households budgets as well as Croatia's economy at large.

A litre of unleaded Eurosuper 95 petrol inched up on Tuesday by 0.15 kuna and of diesel by 0.13 kuna. This raised the cost of petrol to at least 10 kuna per litre at INA stations, or 9.45 kuna for diesel, Novi List daily reported on Wednesday.

In addition, prices are not expected to come down anytime soon. Oil prices in the world market are expected to continue rising, analysts say. Since early April the price of crude Brent oil in the European market went from $69 to the its present price of $74 per barrel. Only a year before, in April 2017, the price of a barrel was $50, meaning that the price of oil went up by 50 percent over the last 12 months.

The main reason for the price hike is the increasing demand for fuel, paired with falling supply in the global market. Economies around the world are using up increasing amounts of energy, and on the other hand the stocks that had piled up over the last few years when oil was cheap, have been spent. In addition, OPEC countries led by Saudi Arabia agreed with Russia to reduce the global oil production output by 1.8 million barrels per day, to drive up oil prices, Novi List reported.

Geopolitical instability also threatens to shoot up oil prices even further, with some analysts speculating that the price of Brent might reach $100 per barrel if US President Trump reintroduces sanctions on oil imports from Iran in May and if the armed conflict involving Saudi Arabia and Houthis in Yemen escalates.

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