The management of the Croatian subsidiary of the Slovenian oil firm Petrol on Wednesday called for deregulating gasoline prices, in the wake of the company's decision to close their gas stations for one hour, in protest of losses they say the company incurred because of the government's price caps on fuel prices.

They warned that caps on fuel prices might lead to shortages, and that “next year will be worse,” since “the current conditions of doing business are untenable.”

A Petrol exeuctive, Vladimir Kuzmic, told Croatian reporters on Wednesday that they have had to put up with various price regulations since October 2021. He added that they decided to close down their stations for one hour on Wednesday because “nothing has changed” despite their appeals to the government and despite today’s meeting with Croatia’s Economy Minister, Davor Filipovic.

He said that fuel sold to consumers in Croatia is bought wholesale based on the Mediterranean stock market prices, and added that companies which buy and distribute fuel on the Croatian market are in a wholly different position than the state-owned oil company Ina, which has its own production pipeline and has the ability to generate profit from their refinery business.

Kuzmic said that procurement of fuel on the market in 2023 showed that the situation was “far more complex” than this year, and that today’s one-hour closure was a form of appeal intended to raise awareness that something should be done to prevent fuel shortages. “The regulated trade margin is not sustainable,” he added.

The CEO of Petrol Croatia, Simona Kostrevc, said she believed her company would eventually reach an agreement with the Croatian government, and that their original intention had been to peacefully arrange a framework that would be acceptable to both sides.

Another Petrol executive, Niko Knez, said that Economy Minister, Davor Filipovic, had offered an increased legally-mandated profit margin, but that they replied that buying prices were much higher than that. “The regulated re-sale margin of 0.65 kuna per liter is not enough,” he added.

Petrol Croatia said that current conditions allow for deregulating the market, and even if regulation must remain, a “reasonable measure should be found” which would make it possible to do business without affecting supply. Petrol estimates that price caps in Croatia has cost them €45.6 million this year.