Forced to knees – fuel too expensive: Croatia closes gas stations

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As a result of fuel price restrictions, small petrol stations in Croatia are closed. According to the Association of Small Fuel Dealers, 90 percent of the 150 small gas stations have already had to close due to high losses. The association called on the government for help and demanded a solution for a sustainable pricing model.

The association, which represents some 60 small businesses, complained that the current arrangement, which introduced a price cap at highway service stations, is causing losses for small fuel traders. The fixing of wholesale prices, which the government says is intended to protect small operators, would have had little effect.

Losses too high
They have to sell fuel at the same price they pay for it. There are also additional costs, including transportation costs for the fuel. That leads to losses, they said.

In the past two weeks alone, the small fuel traders have lost more than 16 million kuna (about 2.1 million euros), according to the association. Some service station operators also complain about problems with wholesale fuel deliveries.

Coverage of 23 percent of the fuel market
According to the association, small dealers account for 23 percent of the Croatian fuel market. The 60 companies employ about 1000 people.

At the gas stations along the highway, the price for a liter of diesel is set at 13.08 kuna (1.74 euros), regular petrol costs 13.50 kuna (1.79 euros).

Source: Krone

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