Council Clears Croatia to Cut Fuel Excise Below EU Floor for Six Months

• Below-minimum rates authorised. On 20 July 2026 the Council published Implementing Decision (EU) 2026/1775 (adopted 10 July 2026), allowing Croatia to cut excise duty up to €0.225/litre below the minimum for gas oil and up to €0.2195/litre below the minimum for unleaded petrol used as motor fuels. [eur-lex.europa.eu], [eur-lex.europa.eu]
• Energy-shock relief. The derogation, granted under Article 19 of the Energy Taxation Directive (2003/96/EC), responds to sharp energy price rises driven by Middle East geopolitical developments, aiming to ease the burden on households and SMEs while remaining proportionate to the internal market. [eur-lex.europa.eu], [eur-lex.europa.eu]
• Strictly time-limited. The measure applies from 1 August 2026 to 31 January 2027 — a six-month window within the maximum permitted under Article 19(2) of the Directive. [data.consi….europa.eu], [eur-lex.europa.eu]

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The Council of the European Union has given Croatia the green light to temporarily lower fuel taxation below the EU’s harmonised floor. Council Implementing Decision (EU) 2026/1775, adopted on 10 July 2026 and published in the Official Journal on 20 July 2026, authorises reduced rates of excise duty on gas oil and unleaded petrol used as motor fuels, pursuant to Article 19 of Directive 2003/96/EC (the Energy Taxation Directive). [eur-lex.europa.eu], [eur-lex.europa.eu]

Concretely, Croatia may apply rates up to €0.225 per litre below the minimum level of taxation for gas oil, and up to €0.2195 per litre below the minimum for unleaded petrol. The request followed sharp and persistent increases in wholesale and retail energy prices triggered by geopolitical developments in the Middle East, which disrupted global oil supply chains. The derogation is intended to ease the economic burden on households — particularly vulnerable consumers — and on undertakings, especially SMEs, while remaining limited and proportionate so as not to distort the internal market. [eur-lex.europa.eu], [eur-lex.europa.eu]

The Croatian authorities first notified the Commission of their intention on 2 April 2026, with the reduction endorsed as within the maximum period allowed under Article 19(2). The authorisation applies from 1 August 2026 until 31 January 2027. Notably, this EU-level derogation sits alongside Croatia’s own rapidly adjusting domestic excise regime, which the government revises roughly every two weeks in response to global market prices. [eur-lex.europa.eu], [data.consi….europa.eu], [prafin.eu]

Links: Decision (EU) 2026/1775 on EUR-Lex · Full text (OJ) · Commission proposal COM(2026) 285 · OJ L daily view, 20 July 2026