Diesel prices fall as Czech fuel caps take effect, but gasoline holds

Diesel prices fell by as much as CZK 3 per liter at some Czech filling stations Thursday as new government price controls and a lower excise tax took effect.

The Finance Ministry set the first daily maximum at CZK 48.72 per liter for diesel and CZK 46.14 for gasoline. Stations may charge less than the regulated ceilings, and several retailers were already doing so Thursday morning.

Gasoline prices changed less dramatically because many stations had been selling it below the new cap before the regulation began.

According to analysis by Czech News Agency, a Shell station in Prague’s Chodov district, diesel fell from CZK 51.90 per liter Wednesday afternoon to CZK 48.70 Thursday morning. Gasoline dropped from CZK 46.90 to CZK 46.10.

A Makro station near Velká Bystřice in the Olomouc region cut diesel by CZK 3 to CZK 46.90 per liter. Gasoline fell by CZK 1 to CZK 43.90.

Similar reductions were recorded at Makro in Ostrava-Hrabová, where diesel also dropped to CZK 46.90 and gasoline to CZK 43.90.

A MOL station in Olomouc lowered diesel from CZK 51.90 to CZK 48.70 per liter, while gasoline fell from CZK 46.90 to CZK 45.90.

Other stations made smaller changes. EuroBit near Velká Bystřice reduced diesel by CZK 0.40 to CZK 48.50 but left gasoline unchanged at CZK 44.90.

Analysts expect the average diesel price to move toward CZK 48 per liter in the coming days. Gasoline is forecast to remain around CZK 46, although it could gradually fall below that level.

The Finance Ministry will set new maximum prices each day through the end of October.

The ceilings are calculated using a rolling three-day average of wholesale fuel prices, with retailers permitted a maximum margin of CZK 2.50 per liter.

The government also reduced the diesel excise tax from CZK 9.95 to CZK 8.011 per liter. The tax on gasoline remains unchanged, explaining why the measures have had a greater effect on diesel.

Wholesale prices have also fallen by around 10 percent from their September peak, according to analysts, adding further downward pressure.

XTB analyst Jiří Tyleček said the largest reductions would be visible at more expensive highway stations. Price differences between retailers are also expected to narrow under the cap.

However, he warned that longer-term relief will depend on global fuel supplies and refinery margins. Regulated prices could begin rising again if wholesale costs increase or the United States restricts diesel exports.

The Union of Independent Petroleum Traders said some stations could be forced to sell diesel at a loss during the first days of regulation.

Smaller retailers may still have stocks purchased at higher wholesale prices and under the previous excise tax rate, the union said.

The Finance Ministry acknowledged that some businesses may be selling older stocks but said identical rules must apply to all retailers regardless of their size or how frequently they replenish supplies.

Some motorists apparently delayed filling up in anticipation of the new prices. Globus recorded a nearly 16 percent decline in average diesel sales between Sept. 21, when the measures were announced, and Sept. 29. Gasoline sales fell by 3.4 percent over the same period.