Czech government caps fuel margins, cuts diesel tax

The Czech government will cap fuel distributors’ margins and reduce the excise duty on diesel in response to persistently high fuel prices, Prime Minister Andrej Babiš (ANO) announced after a cabinet meeting on Thursday.

Under the plan, the maximum margin for fuel retailers will be set at 2.50 CZK per litre for both petrol and diesel. At the same time, the excise duty on diesel will be cut by 2.35 CZK per litre, bringing it down from the current 9.95 CZK. The tax on petrol will remain unchanged at 12.84 CZK per litre.

The state will also introduce a system of daily maximum fuel prices and continue market monitoring. The measures are expected to take effect on Wednesday, April 8.

In addition, the cabinet is set to discuss draft legislation on Monday, April 13, which would allow the government to regulate fuel margins and prices more flexibly through decrees.