THE IMPACT OF PETROLEUM PRODUCT PRICE MOVEMENTS ON THE AUTOMOTIVE MARKET IN THE REPUBLIC OF CROATIA

Zoran Kovacevic (), Ivan Susnjar and Tomislav Gelo
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Zoran Kovacevic: University of Zagreb, Faculty of Economics and Business, Zagreb
Ivan Susnjar: INA-Industrija nafte d.d. Zagreb
Tomislav Gelo: University of Zagreb, Faculty of Economics and Business, Zagreb

Economic Thought and Practice, 2014, vol. 23, issue 1, 105-126

Abstract: The aim of this paper is to determine the connection between the price of petroleum products and structural changes in the demand for newly registered vehicles in the Republic of Croatia. The liberalization of petroleum product prices in 2000 led to their significant and continuous growth until 2012. At the same time, the number and structure of newly registered passenger cars have greatly changed. The market was growing until 2008 and was followed by significant decline. The share of gasoline-powered cars is changing within the overall structure and the individual vehicle classes. Two important changes that are going in two opposite directions occur on the vehicle market. The expenditures on purchase of vehicles are falling but expenditures on fuel and lubricants are growing. At the same time, the expenditures for vehicle repairs are growing as well. By analysing the relationship between the prices of petroleum products and the overall structural changes of newly registered passenger cars from 2000 to 2011 on the Croatian territory, the authors conclude that the results do not indicate any link between the annual gasoline and diesel price volatility and the share in the structure (according to class) of newly registered passenger cars. Also the results do not indicate the existence of links between the annual petrol and diesel price volatility and the total number of newly registered cars.

Keywords: price; petroleum products; market; structure; vehicle (search for similar items in EconPapers)
JEL-codes: D12 L1 L62 Q41 (search for similar items in EconPapers)
Date: 2014
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