Czech government to cap fuel station margins amid soaring prices

The government will restore price regulation at petrol stations in response to soaring fuel prices. From October 1, it will cap retail margins at 2.50 crowns per litre and simultaneously cut the excise tax on diesel by 2.35 crowns, including tax, the Finance Ministry said on Monday.

The cabinet is also introducing an extraordinary sectoral tax on oil processors.

Diesel and petrol prices have risen sharply in recent weeks due to a further escalation of the conflict in the Middle East and insufficient refinery capacity.

According to CCS, which monitors fuel prices over the long term, the most widely sold Natural 95 petrol was selling for an average of 45.94 crowns per litre on Sunday, while diesel cost 49.23 crowns. Since the beginning of September, petrol has therefore risen by more than four crowns per litre and diesel by 3.70 crowns.