Czech Republic Eases the Burden on Drivers at Gas Stations

Due to high energy prices, the Czech government has approved a package of measures to ease the burden on drivers at the gas station. Finance Minister Alena Schillerova announced that a price cap on gasoline and diesel will be reintroduced starting October 1. The limits are to be updated daily. At the same time, the excise tax on diesel will be reduced to 8.011 korunas (33 euro cents) per liter. This is the lowest rate permitted under EU directives.

“This measure has a significant impact on combating inflation, provides relief for businesses and households, and keeps fuel prices in the Czech Republic at one of the lowest levels in the EU,” said Schillerova. The fuel price package will initially be in effect for one month but may be extended. A price cap was already in place from early April through the end of July.

Government Wants to Make Refineries Pay

The government led by right-wing populist and billionaire Andrej Babis is also planning an excess profits tax on refineries. It is intended to apply for the years 2026 and 2027 and will skim off half of the increase in gross margins compared to 2025. The cabinet has introduced a corresponding draft bill. The expected additional revenue for this year alone is estimated at the equivalent of 226 million euros. The two Czech refineries in Litvinov and Kralupy nad Vltavou are part of the Polish Orlen Group.

Due to comparatively low fuel prices, many drivers from the German border region cross the border to fill up their tanks. However, customs, tax, and hazardous materials regulations must be observed. The Czech Republic has a dense network of gas stations. The largest operators are the Orlen Group and the Hungarian company Mol. The state-owned company Cepro also operates 209 gas stations under the Eurooil brand and 75 under the Robin Oil brand.