The Czech government announced on Thursday, April 2 that energy companies will be limited in the profits they can earn on fuel as prices continue to rise amid the ongoing Middle East war.
Global fuel prices have surged since the U.S. and Israel launched strikes on Iran more than a month ago, with Iranian retaliation blocking the strategically significant Strait of Hormuz.
According to monitoring firm CCS, Czechs paid 41.36 koruna (€1.70) per litre for petrol last weekend, up 3.66 koruna (€0.15) from two weeks prior, while diesel rose to 48.08 (€1.97) koruna per litre, an increase of 6.29 koruna 6.29 (€0.26). In response, the government stated that from April 8 fuel firms will be prohibited from making profits exceeding 2.5 koruna (€0.10) per litre.
In addition, officials cut the excise tax on diesel by 2.35 (€0.10) koruna per litre from the current 9.95 koruna (€0.41).
Prime Minister Andrej Babiš said the government would also set maximum prices daily at 12:00 GMT, with weekend rates established Friday and valid through Monday.
Babiš, leader of the conservative ANO party, criticized neighboring countries for failing to coordinate on fuel pricing—citing Slovakia’s dual pricing system for locals and foreign vehicles, and Poland’s VAT reduction from 23% to 8%.
“Instead of coordinating prices within the region, we have total chaos,” according to Babiš.
