Government plans windfall tax on refinery margins to fund fuel price controls

The Andrej Babiš government announced that from October it will re-introduce fuel price controls, with the finance ministry publishing daily ceiling prices for gasoline and diesel derived from exchange-traded averages plus a fixed trader margin of 2.50 CZK per litre. Diesel excise tax will be lowered to 8.011 CZK per litre, whereas the gasoline levy remains at its current level. In parallel, a temporary windfall tax on refinery margins will be levied for one outlet and following year, focusing on the elevated margins expected in 2025.

Officials said the tax revenue is expected to offset much of the cost of the price-regulation scheme. The finance ministry cautioned that the overall budget impact depends on the uncertain development of the ongoing conflicts affecting energy markets.