Czech government extends fuel price regulation until November 30

fuel price regulation Czech Republic diesel excise tax inflation mitigation oil market volatility

The Czech government has decided to extend the regulation of gasoline and diesel prices through November 30, 2026. This measure, originally set to expire at the end of October, aims to mitigate price volatility and curb inflation caused by instability in the global oil market.

Under the current framework, the Ministry of Finance sets daily maximum prices for fuel based on a three-day average of wholesale prices from sources such as Čepro, Orlen, and MOL, combined with Platts exchange quotes. The regulation also caps dealer margins at 2.50 CZK per liter. Additionally, the government is maintaining a reduced excise tax on diesel, lowering it from 9.95 CZK to 8.011 CZK per liter, which is the minimum level permitted by European Union regulations.

Officials cited geopolitical tensions in the Middle East, including conflicts involving Iran and threats to shipping in the Strait of Hormuz, as primary drivers for the continued intervention. While the price ceilings are adjusted daily, the government noted that diesel remains a critical input for the national economy.