Czech government adjusts fuel price caps and cuts diesel tax amid soaring prices

On 1 October the Czech government activated a temporary price-control regime for diesel and gasoline, with daily caps calculated from a three-day moving average of wholesale prices plus a maximum retailer margin of 2.50 CZK per litre. After an early drop, the diesel ceiling started to increase, whereas the gasoline ceiling, which had risen initially, began to decline after hitting its highest point. To further ease fuel costs, the state cut the diesel excise tax from its earlier rate to a lower level, while the gasoline tax remained unchanged.

The finance ministry announces the caps each day, and compliance is monitored by the Specialized Financial Office. This regulation, which runs through the end of October, follows a similar spring-time scheme that cost the state roughly one billion CZK per month. Higher fuel prices are linked to Middle-East tensions, including Iran’s blockage of the Hormuz Strait, and September data show a sharp year-on-year price increase that has contributed to a rise in inflation.