Czech Government Imposes Fuel Price Cap and Cuts Diesel Tax

The Czech government has moved to cap fuel prices and slash diesel taxes in an effort to curb rising costs due to the ongoing international energy crisis, announcing a system that will see the state set maximum daily prices for fuel across the country. Prime Minister Andrej Babiš said the intervention follows concerns that fuel retailers were charging excessive margins, despite earlier pressure from the government to bring prices down voluntarily. Under the new system, the Ministry of Finance will determine a maximum fuel price each day, applying to all gas stations nationwide. Officials estimated that diesel, if the cap came into force on Thursday, would currently be capped at 46.43 Czech crowns per liter, or around €1.89. “We monitored the margins and at the beginning of the conflict they were within the norm, but gradually they became excessive,” Babiš said, adding that negotiations with distributors had only partially reduced prices. “We decided to intervene.” The government will also introduce a cap on retailer margins, setting the maximum allowable profit at 2.50 crowns (€0.10) per liter for both petrol and diesel. Alongside the price controls, ministers approved a targeted tax cut on diesel fuel. Excise duty will be reduced by... The post Czech Government Imposes Fuel Price Cap and Cuts Diesel Tax appeared first on Prague Morning .

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