Croatia unveils €450mn support package to curb energy costs
Intellinews · 321 words · 2 min read
Croatia's government on March 23 approved a €450mn package of measures to shield households and businesses from rising energy costs, extending price caps on fuel while freezing electricity and gas tariffs until October.
Prime Minister Andrej Plenković said the measures, the tenth such package since 2020, aim to cushion the impact of global energy shocks and preserve economic stability. Including previous interventions worth €8.5bn, total government support has now reached around €9bn.
The latest package was announced amid heightened volatility in global energy markets, driven in part by disruptions linked to tensions in the Middle East and the closure of key routes such as the Strait of Hormuz.
Oil prices have surged from around $71 per barrel just weeks ago to nearly $115, prompting the government to step in again to limit the pass-through to consumers.
Under the new measures, fuel price increases will be partially capped. From March 24, Eurodiesel will rise to €1.73 per litre, compared with a projected €1.86 without intervention. Eurosuper petrol will cost €1.62 per litre instead of €1.71, while blue diesel will increase to €1.19 per litre, a government statement said.
The government also allocated €20mn in additional aid for farmers and €8mn for fishermen to offset higher fuel costs.
Electricity and gas prices will remain unchanged for households, public institutions and small businesses until September 30, reversing earlier plans to phase out subsidies. The energy support component alone is valued at more than €100mn.
Plenković said the government's priority was to maintain supply security, protect living standards and sustain economic growth, noting Croatia has outpaced the European Union average for five consecutive years.
However, he acknowledged that full price controls were not feasible, warning that excessive intervention could disrupt supply and encourage cross-border fuel demand.
He also stressed the need for a long-term shift towards renewable energy, highlighting Europe's heavy reliance on imported fossil fuels as a key vulnerability exposed by the current crisis.