Czech Republic Introduces Daily Fuel Price Caps for the First Time: New Price Limits Take Effect Today

As of today, state-regulated maximum prices for fuels are being introduced in the Czech Republic for the first time. The aim is to curb extreme price fluctuations and limit excessive margins.

The basis for the state-regulated maximum fuel prices is a government resolution from 2 April under Prime Minister Andrej Babiš. Accordingly, the maximum margin for filling stations on non-premium fuels is capped at 2.50 crowns per litre. The move follows individual cases of significantly inflated mark-ups – particularly along major motorway routes, where margins for petrol reached up to 7 crowns and for diesel up to 6.50 crowns.

At the same time, the Ministry of Finance has reduced the excise duty on diesel by 1.939 crowns per litre, which corresponds to a relief of around 2.35 crowns per litre including VAT. Overall, the package of measures is intended to ease the pressure from rising global energy prices and prevent local price extremes.

For today, the following maximum retail prices apply for the first time:

• Petrol: 43.15 crowns per litre (incl. VAT)

• Diesel: 49.59 crowns per litre (incl. VAT)

These figures represent the upper limit that filling stations must not exceed. The Ministry of Finance also emphasises that operators should not fully utilise these limits, but instead keep prices below them.

Without the state intervention, prices would be significantly higher. According to ministry calculations, petrol would have reached 48.59 crowns per litre, and diesel as much as 56.77 crowns.

The Ministry of Finance sets a maximum price limit daily at 14:00, which applies for the following day. Prices set on Fridays apply for the entire weekend until Monday inclusive. The measure is initially planned to remain in place until 30 April.

Price formation remains linked to the market

The defined maximum prices continue to be based on market data. They are composed of average wholesale prices (including those of ČEPRO, ORLEN and MOL) as well as international market quotations from the organisation Platts. In addition, the capped margin of 2.50 crowns and VAT are included.

Compliance with the price caps is monitored by the specialised tax authority. Violations may result in significant penalties, which – depending on the level of unlawful profit – can amount to several million crowns.