Drivers were greeted by an unpleasant scene at gas stations across Croatia this Tuesday. After weeks of relative stability, fuel prices experienced a significant jump, confirming analysts’ fears that geopolitical tensions from the Middle East will inevitably spill over into the domestic market. The new price lists, which came into force on March 3, bring the highest petrol prices in a year and diesel prices in two years, putting additional pressure on household budgets and business costs.
Record prices at gas stations
According to the latest data, a liter of basic Eurosuper 95 is now sold at the price of 1.46 euros at most pumpswhich is a level not seen in the past twelve months. It’s an even bigger blow to diesel vehicle owners, since it the price of Eurodiesel jumped to 1.48 euros per literthus reaching the highest value in the last two years.
Premium fuels did not fare any better either. The price of Eurosuper 100 approached the limit of 1.90 euroswhile premium versions Eurosuper 95 exceeds 1.57 euros per liter.
As usual, drivers who refuel at stations along the highways pay a few cents more. Growth was also recorded for blue diesel, whose price now hovers around eighty cents, depending on the distributor.
The Strait of Hormuz as a trigger of the global crisis
The main cause of this price shock lies in the strong escalation of the conflict in the Middle East involving Iran, Israel and the United States of America. The key moment that caused tectonic disturbances in the global energy market was the official closure of the Strait of Hormuz, the world’s most strategically important oil transportation route. According to the world media, about twenty percent of the total global oil supply passes through this narrow passage, as well as a huge part of the world’s liquefied natural gas (LNG). The blockade immediately raised the price of Brent crude oil above eighty dollars per barrel, and the consequent increase in the costs of transportation and insurance of tankers was directly reflected in the retail prices in Europe, including in Croatia.
This development marks a return to the model of weekly price correction every Tuesday, which means that drivers can expect regular adjustments in line with movements on world stock markets. Analysts warn that this could be just the beginning of a longer period of instability. Any further escalation in the Middle East or the prolongation of the blockade of the Strait of Hormuz could lead to new price increases as early as next week, making the cost of living and doing business entirely dependent on the resolution of the global crisis.