Croatian fishermen feel the strain after Iran war ramps up fuel prices

PULA, Croatia (AP) — As the sun sets over the Adriatic Sea, Marijan Jakopovic prepares his boat and nets to sail out as he has done for the past 30 years. But the 55-year-old fisherman from Croatia says times have never been so tough for many in his line of work.

Rising prices of fuel driven by the war in Iran are taking their toll on Croatia’s fishing industry, adding to a myriad of existing problems, from limited stocks and fishing restrictions, to widespread imports of frozen seafood.

Key providers of fresh fish during Croatia’s summer tourism season, the fishermen are warning that if the ceasefire in Iran does not hold and fuel prices surge again, things could become unbearable.

“This is turning into an almost hopeless situation,” said Jakopovic, who is from the small village of Lanisce, in the northern Croatian peninsula of Istria.

Prices in Croatia of so-called blue diesel, fuel solely used by farmers and fishermen, have increased by around 70% in a month, from 0.80 euros ($0.94) per liter on March 8 to 1.36 euros ($1.59) per liter on April 7, according to official data.

Croatia’s government has temporarily capped the price rise but this did not fully avert the blow. Other countries in the region have been similarly affected despite introducing state subsidies or price limits.

Vedran Spehar, a senior official in Croatia’s Ministry of Economy, said this week on state-owned Croatian Radio that prices of blue diesel would have reached at least 2 euros ($2.34) per liter had it not been for government action, which also ensured there were no shortages.

A European Union member state since 2013, Croatia adopted the euro currency in 2023, a transition that coincided with price increases across many sectors. Previously, the economic fallout from the war in Ukraine had pushed up energy and food prices even before the start of the Iran war.

Croatia currently has the highest inflation in the EU at 4.8% annually.

Jakopovic said accumulated costs have forced some fishermen to spend up to 70% of their earnings on fuel, depending on the type of boat they use. And, this is in addition to the cost of crews, maintenance and equipment, he pointed out.

The problem is not new.

Commercial fishing in Croatia has faced difficulties for years even as tourism along the country’s breathtaking coastline and islands exploded — last year alone, more than 20 million tourists visited the country.

This year, the price of fish at Croatian markets and in restaurants could go up.

Almira Raimovic is a vendor at the market in the northern town of Pula. She predicted that if fishermen raise the price of their catch to accommodate the fuel cost, this would affect both market and wholesale prices.

Raimovic herself used to fish but shifted to a more profitable option — she now takes tourists out for trips on what used to be her fishing boat. People will always buy fish in the Mediterranean countries, Raimovic said, but their habits might have to change.

“The focus will likely shift to cheaper fish, sardines and anchovies, which are still more affordable than other (fish),” she said. “Rising fuel prices will affect everyone, inflating the cost of living and of food across all sectors, not just fishing.”

Fishermen have already complained of shrinking stocks, seasonal bans on some kinds of fish, catch limits and protected sea zones designed to help preserve certain endangered species.

As a member of the EU, Croatia has adopted the bloc’s strict rules on sustainable fishing.

All this means that fishermen now have to sail further out and spend more time at sea, ramping up their fuel consumption. The vicious circle could drive many out of business as each sea trip now comes with too much uncertainty, said Jakopovic.

“We don’t know how much longer we will be able to keep working,” he said.

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AP Writer Jovana Gec in Serbia contributed to this report.