ZAGREB, 21 March 2026 – Croatia’s government is preparing a new package of measures to cushion the impact of rising energy prices caused by escalating conflict in the Middle East, Prime Minister Andrej Plenković said on Saturday.

Speaking after visiting several earthquake reconstruction sites in Zagreb, Plenković said the government would intervene to ensure price increases remain manageable for households and businesses.

He warned that the world could be entering one of the most severe energy crises in recent history.

“We are probably at the beginning of the biggest energy crisis this generation remembers,” Plenković said.

The Croatian government is working on a comprehensive package of measures aimed at reducing the impact of rising energy costs on citizens and the economy.

Plenković confirmed that existing price caps on electricity would likely be extended, while gas prices are currently regulated until October.

Additional measures under consideration include targeted support for vulnerable energy consumers and assistance for key sectors affected by rising fuel costs.

Particular attention will be given to farmers, as increases in the price of “blue diesel”, subsidised fuel used in agriculture, could significantly impact production costs.

“This will be a package on which we are working intensively,” Plenković said.

The prime minister linked the expected price increases directly to escalating tensions in the Middle East, including attacks on major energy infrastructure.

He noted that the situation intensified following Israeli strikes on the South Pars gas field and Iranian retaliatory attacks on energy facilities across the Gulf region.

According to Plenković, damage to oil fields and refineries could disrupt supply and prolong instability in global energy markets.

“This means it will take longer for supply levels of crude oil and petroleum products to stabilise,” he said, referring to assessments by the International Energy Agency.

Fuel prices expected to rise sharply

The government estimates that, without intervention, prices could rise significantly.

Eurodiesel could increase by around 20 percent, petrol by approximately 15 percent, and blue diesel by nearly 30 percent.

While increases are unavoidable, Plenković said the government intends to ensure that the final prices paid by consumers remain below the peak levels seen during the previous energy crisis triggered by the Russian invasion of Ukraine in 2022.

With energy markets increasingly volatile and geopolitical tensions rising, the government says it will continue monitoring developments closely while preparing measures to protect Croatia’s economy and citizens.

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