Czech fuel prices to be capped as refineries face tax

The Czech government said Monday it will cap fuel prices from October 1, cut diesel excise tax and tax refineries as prices rise amid the Middle East war.

Finance Minister Alena Schillerova said the government had approved a proposal to resume fuel price regulation. She said the finance ministry would set maximum petrol and diesel prices daily and cut diesel excise tax to the minimum permitted by European Union rules.

The average diesel and petrol price at Czech petrol stations reached 44.21 koruna, or $2.08, per litre in August, up from 34.49 koruna, or $1.63, in August 2025, according to market monitor CCS.

The ministry will limit petrol station profit from fuel sales to 2.5 koruna per litre and cut diesel excise tax to about eight koruna per litre from 9.95 koruna.

The government will also introduce a temporary tax on refineries. Schillerova described refineries as “a sector benefitting from the price growth.” The tax will amount to 50 percent of the difference between fuel prices in 2026 and 2025, and next year between fuel prices in 2027 and 2025.

It is Prime Minister Andrej Babis's second such move this year after price caps and excise tax cuts were in effect between April and July.