Government approves package of measures to reduce current high fuel prices in the Czech Republic

At an extraordinary meeting, Andrej Babiš's government addressed the current situation on the Czech fuel market, whose prices have risen dramatically in recent weeks as a result of the armed conflict in the Middle East. It approved a package of measures to reduce the current high fuel prices in the Czech Republic.

The Government approved a general measure of the Government of the Czech Republic on the mass waiver of excise duty on selected mineral oils and the imposition of price regulation of maximum margins in the form of maximum daily prices. „We have been monitoring and evaluating the fuel market situation since the conflict in the Middle East. We have been monitoring margins, and although they were normal at the beginning, it gradually became clear that they were excessive. We called on the distributors and had two discussions with them, but even though they reduced the price of diesel on D1 and the main highways by about two crowns as a result of our call, we came to the conclusion that some systemic, fundamental measures needed to be taken.“ said Prime Minister Andrej Babiš.

The government has therefore decided to set the maximum permissible margins for petrol stations on diesel and petrol at CZK 2.50 by means of a price assessment by the Ministry of Finance. This restriction does not apply to premium fuels.

"Regulation of margins must go together with a reduction in excise duty,“ stated the Prime Minister. The cabinet therefore approved a reduction of excise duty on diesel by CZK 1.939 per litre to the minimum allowed by EU regulations. Taking into account the value added tax, this step reduces the price of diesel by CZK 2.35 per litre.

In the case of petrol, the excise duty remains at its original level. „We are focusing on oil because it has a strong impact on inflation, industry, transport of people or supply, and therefore the overall functioning of the economy,“ explained the Deputy Prime Minister and Minister of Finance Alena Schillerová.

„The system will operate on a daily basis. We are starting from Wednesday 8 April to give the market a chance to prepare. On Tuesday, April 7, at 2pm, the Ministry of Finance will publish the formula and determine the maximum price that citizens and businesses will pay. Thereafter, every day at 2pm, the Treasury will set a maximum price, always on Friday before the weekend, which will then apply up to and including Monday,“ specified Babiš. „This is a measure that should fundamentally help everyone, the whole economy, because it is clear that fuel and especially diesel are the key product. I think this is the best solution we could find,“ He added.

The adopted measure will be valid until 30 April. The Ministry of Finance will also prepare a new draft law that will allow any government to regulate margins and thus fuel prices in the future by a government decree if necessary. The Cabinet intends to discuss this proposal in Parliament under the legislative emergency regime so that it can enter into force as soon as possible. Further details of the steps approved by the government can be found in press release of the Ministry of Finance.

The Government also discussed and approved the negotiation of an agreement between the Czech Republic and Poland on the construction and maintenance of bridge structures and maintenance of common road sections on the Czech-Polish state border. The agreement is a continuation of a previous similar document from 1998, which is already outdated and does not correspond to the current situation. It regulates the conditions for the construction, reconstruction and maintenance of selected bridges and roads between the two countries. It is a so-called presidential treaty, so its ratification by the President of the Republic requires the consent of both Houses of Parliament.

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