Czech fuel prices set to climb as refinery margins surge to record levels

In the Czech Republic, fuel prices at service stations have continued to climb, with the weekly average increasing by nearly two crowns; Natural 95 now exceeds 44 crowns per litre and diesel approaches 48 crowns. Analysts attribute the rise to exploding refinery margins, which have reached roughly $50-55 per barrel for Orlen and about $50 for MOL, far above their typical $15-20 range. Economist Lukáš Kovanda stresses that the gap between crude oil costs and pump prices is now driven by these margins.

He warns that even if oil prices stay flat or fall, motorists could still face higher costs. The upcoming Ecofin meeting in Dublin will consider a windfall tax on oil companies, a move supported by Czech leaders who see the margins as an unfair profit squeeze on consumers. Ministers Karel Havlíček and Andrej Babiš have signaled readiness to act if Czech fuel prices become significantly higher than those in neighboring countries.