The State Secretary at the Economy and Sustainable Development Ministry, Ivo Milatic, said on Monday that as of Tuesday prices of motor fuels would be slightly higher while trade margins were restored to the level of June 2022, or 0.75 kuna converted into euros.

Milatic also noted that the Regulation on Excise Taxes on Energy Products was amended and that Petrol and Crodux distributors should comply with it. He recalled that at its session held earlier in the day the government set new fuel prices, so as of Tuesday eurosuper 95 petrol will cost €1.33 (10.02 kuna) and diesel €1.47 (11.08 kuna) per litre. This is a €0.05 rise for petrol and a €0.03 rise for diesel. The new prices will be in force for the next fortnight, the government said.

Compared to the regime in force until now, for energy operators the trade margin for diesel and petrol has been restored to the June 2022 level of 0.75 kuna, converted into euros. Until now, the trade margin for petrol and diesel was 0.65 kuna.

The government on Monday also passed a decree changing the Regulation on Energy Products and Electricity Excise Taxes to extend the validity of a decision lowering the excise tax which the government, by amending the Regulation in 2022, reduced on nine occasions in order to alleviate the increase in retail prices of energy products, the government said in a statement.

The decree lowers the excise tax for the best-selling fuels – unleaded petrol and diesel as well as heating oil, in the period until 31 January 2023, by €106.31 per 1,000 litres of unleaded petrol, €53.13 per 1,000 litres of diesel and by €35.14 per 1,000 litres of heating oil. Thus in January the excise tax on unleaded petrol will amount to €406 per 1,000 litres, the excise tax on diesel will amount to €353 per 1,000 litres and on heating oil €21 per 1,000 litres.

Asked how it was possible that fuel prices at Petrol and Crodux filling stations on Sunday, 1 January, were higher than those set by the government, Milatić said that the regulation enabling Petrol and Crodux to do it was adopted at the last government session in 2022 (29 December), under which the excise tax on gasoline was set at HRK 3.86 per litre but that it was now being lowered with the latest decree changing the regulation.

“Until now, distributors never raised their prices during that interval of a day or two, but in this case Petrol did. We are not too happy about it, the other distributors did not do it but as of tomorrow Petrol, too, will have to lower the prices,” Milatic said.

He explained that the one-day interval when the regulation (on excise taxes) is not in force must occur every 90 days under the Oil and Petroleum Products Act, under which prices can be defined by regulations for a period of up to 90 days.

Milatic said that inspection teams, the State Inspectorate and the Tax Administration take care of how prices are set so as to prevent any anomalies.

Asked if the move by Petrol and Crodux as its subsidiary was in line with the law, he said that this would be established by the Tax Authority and the State Inspectorate.

Asked if it was just a coincidence that Petrol and Crodux made that move, Milatic said that everyone had the right to pursue their own policy but he called on Petrol and other distributors to refrain from such actions during the day or two-day-long interlude between the regulations.

“If (Petrol and Crodux) do not restore the prices (to the previous level) tomorrow, that will definitely be contrary to the law,” he said.

Milatic said that he did not believe there was a war going on between Petrol and the Croatian state because everyone answered to their own owner, with the Croatian government answering to the Croatian state and Petrol and Crodux to their shareholders.

“We will protect the national economy and citizens, they will protect themselves and eventually we will see who gets to have the last say,” Milatić said.

Earlier in the day, Petrol said that it and Crodux formed the latest retail prices, in force as of 1 January, in line with the Croatian government’s Regulation on Excise Taxes on Energy Products and Electricity, published in the Official Gazette on 30 December 2022, and the Regulation on Maximum Retail Prices of Petroleum Products, published in the Official Gazette on 19 December 2022, with the retail prices having been converted into euro in line with guidelines from the Economy and Sustainable Development Ministry.

The retail prices thus formed will stay in force until the said government regulations are amended or repealed, Petrol, the Slovenian-owned energy operator, said earlier in the day.