Czech government raises fuel price caps

The Czech Ministry of Finance announced that the maximum allowable prices for gasoline and diesel will increase on Wednesday, with gasoline rising to 41.31 CZK per litre and diesel to 37.29 CZK. The caps, introduced in early April in response to rising oil prices caused by the Israel‑U.S. strike on Iran and the subsequent closure of the Strait of Hormuz, are being extended until 19 July and are based on a three‑day moving average of wholesale prices. Operators may add a margin of up to three crowns per litre, while a temporary cut to the diesel consumption tax was also applied in April.

Analysts expect Czech inflation to dip slightly below the 2 % target in June, helped by a rapid decline in fuel prices, but warn that the effect may be temporary. Higher global oil and gas prices linked to Middle‑East tensions could push inflation back up later in the year, especially as energy and fertilizer costs feed into food prices.