Slovenia Seeks Fuel Excise Cuts from Brussels
Fuel prices in Slovenia are significantly higher than in Croatia, and last week the European Commission approved Zagreb's exemption for further tax reductions.
Fuel prices in Slovenia are significantly higher than in Croatia, and last week the European Commission approved Zagreb's exemption for further tax reductions.
Last Tuesday, Croatian drivers faced a sudden spike in fuel prices. A liter of gasoline rose from €1.54 to €1.62, diesel jumped from €1.59 to €1.75, and blue diesel from €1.02 to €1.21. The Croatian government says that without its interventions, prices would be even higher, and additional relief could come from Brussels.
Back on April 2, 2026, amid the first wave of conflict between the US, Israel, and Iran that seriously disrupted traffic through the Strait of Hormuz, the Croatian government asked the European Commission for permission to lower fuel excise duties below the minimum level set by the EU. Last week, a positive decision arrived.
This means that from August 1, 2026, until the end of January 2027, excise duties on unleaded petrol can be reduced by up to 21.95 cents, and on diesel by up to 22.5 cents below the EU minimum. This measure opens the door for lower prices at domestic gas stations, but the government has not yet confirmed to what extent it will use this option.
Besides Croatia, Sweden has been the only EU member state to request such an exemption so far. However, Slovenia may soon join them. According to Forbes Slovenia, the government of Janez Janša plans to ask the European Commission for permission to further reduce excise duties.
The previous government of Robert Golob had already cut excise duties to the lowest allowed level in the EU in the spring, and Janša's government last week temporarily froze the energy efficiency fee and the carbon dioxide emissions levy for two months. Despite these efforts, fuel prices in Slovenia remain noticeably higher than in Croatia. A liter of Eurosuper 95 costs €1.60, diesel €1.83, and heating oil €1.44. Since the end of February, the price of diesel and heating oil has risen by 35 cents, and petrol by 16 cents.
The European Commission will have a three-month deadline to decide on Slovenia's request after receiving it. Ljubljana will build its argument on the assessment that fuel prices will remain elevated for some time due to instability in the Middle East.
In the reasoning behind approving Croatia's request, the Commission noted that the measure will ensure more affordable energy for citizens and the economy without distorting the market. At the same time, it warned that tax cuts could lead to lower budget revenues and increased demand for fossil fuels, which is why the exemption must be strictly time-limited.
Slovenia's Ministry of Finance points out that after the crisis broke out, they kept excise duties at the minimum of 33 cents per liter, while Croatia increased them at the start of the tourist season. Although such measures help drivers and businesses, they leave a mark on the budget. Between March and May, Slovenia collected €39 million less in excise duties than if the old rates had been maintained. Despite this, total revenue from energy excise duties in the first five months of 2026 was only €5 million lower compared to the same period last year.
A further reduction in excise duties would significantly impact the budget revision that the Slovenian government is expected to present in September.
In both countries, there is also debate about VAT, which is applied to excise duties and, according to critics, unnecessarily drives up the final price of fuel. While some opposition parties in Slovenia are calling for a change in the rules, the government responds that this is impossible. The setting of VAT is regulated by the EU Directive on the common system of value added tax, which explicitly prohibits excluding excise duties from the tax base and applying reduced VAT rates to motor fuels. This answer also applies to critics in Croatia who have asked the government why it did not resort to that option.
