The Czech government will limit energy company profits on fuel and cut diesel tax to combat soaring prices driven by Middle East conflict.
PRAGUE: The Czech government will prevent energy companies from making excess profits on fuel as prices surge due to the Middle East war.
Global fuel prices have risen since the conflict began over a month ago with US and Israeli strikes on Iran.
Czechs paid 41.36 koruna per litre for petrol last weekend, up 3.66 koruna from two weeks earlier.
Diesel cost 48.08 koruna per litre, a rise of 6.29 koruna in the same period, according to monitoring firm CCS.
From April 8, companies will not be allowed to make a profit exceeding 2.5 koruna per litre.
Officials also cut the excise tax on diesel by 2.35 koruna per litre from the current 9.95 koruna.
“We are starting next Wednesday… to give the market some room to get ready,” Prime Minister Andrej Babis (pic) told reporters.
The government will also set maximum daily prices for individuals and companies at 1200 GMT.
Weekend prices will be set on Friday and remain valid until Monday.
Babis criticised neighbouring countries for a lack of coordination on curbing fuel prices.
“We perceive what is happening in neighbouring countries, and each country is more or less doing whatever they want,” he said.
Slovakia has set two fuel prices, one for locals and one for vehicles with foreign licence plates.
Poland slashed VAT on fuel from 23% to 8%, which no other country in the region has done.
“Instead of coordinating prices within the region… we have total chaos,” Babis said.
