The Council of the European Union has adopted an implementing decision authorising Croatia to apply reduced excise duty rates on gas oil and unleaded petrol used as motor fuels, under Article 19 of Directive 2003/96/EC. The decision, set to be adopted as an 'A' item on the Council agenda on 8 July 2026, follows a proposal from the European Commission and the absence of objections from the Working Party on Tax Questions.
The derogation allows Croatia to temporarily lower excise duties on these fuels for specific policy reasons, as permitted by Article 19 of the Energy Taxation Directive. The measure aims to reduce fuel costs for consumers and businesses in Croatia, potentially stimulating economic activity. However, it may also create tax disparities with other Member States, affecting competition in the EU internal market. The decision sets a precedent for other Member States seeking similar derogations under the same directive.
The document, published on 30 June 2026, outlines the adoption process and confirms that the decision has undergone legal and linguistic finalisation. The reduced rates will apply for a limited period, as specified in the implementing decision, after which Croatia must revert to standard EU excise duty levels unless a new derogation is granted.
Stakeholders most impacted include Croatian consumers and businesses, who will benefit from lower fuel prices; EU competitors in the transport and logistics sectors, who may face competitive disadvantages; and national tax authorities, who will need to monitor compliance with the derogation's conditions. The decision also reinforces the flexibility within the EU's energy taxation framework, allowing Member States to tailor tax policies to national circumstances while maintaining overall harmonisation.