Czech Government to Cap Fuel Margins, Cut Diesel Tax to Ease Rising Prices
Prague, The Gulf Observer: The Czech government has announced a series of measures aimed at curbing persistently high fuel prices, including capping distributor margins and reducing excise duty on diesel.
Prime Minister Andrej Babiš said the decision was taken following a cabinet meeting on Thursday as part of efforts to provide relief to consumers and stabilize the fuel market.
Under the new plan, fuel distributors’ margins will be capped at 2.50 CZK per litre for both petrol and diesel. Additionally, the excise duty on diesel will be reduced by 2.35 CZK per litre, lowering it from the current 9.95 CZK. However, the excise duty on petrol will remain unchanged at 12.84 CZK per litre.
The government will also introduce a system of daily maximum fuel prices and intensify market monitoring to ensure compliance and transparency.
According to the announcement, the measures are expected to come into effect on April 8.
In a further step, the cabinet is scheduled to review draft legislation on April 13 that would grant the government greater flexibility to regulate fuel prices and margins through decrees, strengthening its ability to respond to market fluctuations.
