Government considering measures against soaring fuel prices

The government is considering means of addressing the sharp rise in energy prices in connection with the war in the Middle East. The cabinet debated several options at its Monday session, among them capping fuel retailers’ margins or reducing excise duties on fuel. The cabinet is expected to select a preferred variant at an extraordinary meeting on Thursday, also in view of the fact that EU energy ministers are set to hold consultations on a coordinated response to rising energy costs on Tuesday.

The government on Monday also approved a loan of 100,000 tons of crude oil from state emergency reserves to refineries, citing supply constraints on the IKL/TAL pipeline. Despite sharp price increases, fuel demand in the Czech Republic has risen.