Croatia decided to impose a temporary limit on fuel prices, setting the maximum price for gasoline at 1.50 euros per liter for two weeks. The move comes at a time of strong pressure on energy markets, caused by the military build-up in the Middle East and disruptions in global oil trade.
According to the newspaper Expresso, the Croatian Government announced that the ceiling will be applied to Eurosuper gasoline, while the maximum price of diesel will be 1.55 euros per liter. The decision comes into force this Tuesday, March 10, and aims to prevent the abrupt rise in international prices from being immediately reflected at fuel pumps.
Rapid response to global price rises
The Croatian decision comes in an international context marked by military tensions and energy instability. According to the same source, the worsening situation in the Middle East contributed to a sharp rise in the price of oil on international markets.
The conflict intensified after a military attack launched by the United States and Israel against Iran at the end of February. According to the same source, the offensive resulted in the death of Ayatollah Ali Khamenei, Iranian supreme leader since 1989, triggering a series of retaliations in the region.
Strategic point at the center of the crisis
After the attack, Iran responded with military operations against several targets, including positions in Israel and US bases in the Middle East. The same source states that attacks against infrastructure were also recorded in countries such as Saudi Arabia, Bahrain, United Arab Emirates, Qatar, Kuwait, Lebanon, Jordan, Oman and Iraq.
The global impact intensified when Tehran decided to close the Strait of Hormuz, one of the world’s most important energy routes. Around 20% of world oil production and a similar percentage of global trade in liquefied natural gas circulate through this maritime corridor.
Other countries look for different solutions
While Croatia has chosen to directly limit prices, other European countries are discussing alternative measures. In France, for example, diesel fuel recently reached two euros per liter, increasing political pressure on the Government.
According to the same source, the French executive has been pressured by the opposition to intervene, but is refusing to resort to direct public support for the purchase of fuel. The argument presented focuses on the impact that this type of measure could have on the public accounts of a country that has been accumulating budget deficits for several years.
Hungary also announced new measures to combat rising energy prices. Prime Minister Viktor Orbán revealed that the Government has decided to establish a maximum price for gasoline and diesel.
In a video posted on social media, the Hungarian leader stated: “We are introducing a protected price for gasoline and diesel, above which public sales prices cannot rise.” It adds that the measure will apply to vehicles registered and licensed in Hungary, covering individuals, farmers, transporters and entrepreneurs.
Energy market under increasing pressure
Hungary had already resorted to a similar mechanism between November 2021 and June 2022, in an attempt to contain inflation. However, says the same source, the measure ended up being abandoned due to hoarding at several gas stations.
The current intervention by European governments shows how geopolitical instability continues to directly influence energy prices. While some countries seek to limit costs for consumers, others prefer to avoid direct interventions in a market that remains highly volatile.
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