The government of Prime Minister Andrej Babiš is looking for ways to reduce the currently high fuel prices. The Prime Minister and his economic ministers have therefore held talks with representatives of the largest petrol station operators in the Czech Republic. The government will return to the issue later this week.
The cabinet also decided to release up to 100 000 tonnes of oil from the country's strategic reserves. These will be provided to Orlen Unipetrol as a loan due to the supply shortfall through the TAL pipeline.
According to the Prime Minister, the current margins of distributors are not reasonable. The government expects them to be around CZK 3.50 per litre for diesel and CZK 2.50 for petrol. Negotiations with the main market players will continue on Wednesday, and the cabinet will meet again on Thursday.
The Ministry of Finance will also examine the possibility of reducing excise duty. The Prime Minister pointed out that there had already been a slight drop in prices on the D1 motorway and that there was room for further reductions according to government data. Distributors were urged not to take advantage of the tight market situation.
The released oil is expected to help stabilise the market during supply constraints caused by maintenance work on the TAL pipeline. According to the government, the situation in Europe is tense and may require international coordination.
The Cabinet also discussed other topics. It approved changes to the contract for the construction of a new nuclear power plant in Dukovany, expanded the sanctions list to include Russian citizen Konstantin Rogach and dismissed Ondrej Soska, the general commissioner of the Czech participation in Expo 2025.
The Government also approved new ambassadors to several countries, whose appointment will now be considered by President Petr Pavel. It also dealt with legislative proposals, such as the postponement of some steps in the digitisation of social benefits or changes in health care and municipal policy.
gnews.cz - GH
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