Prague Caps Fuel Prices, Taxes Orlen's ‘Windfall’ Refining Margins
- On Monday, the Czech government announced it will reintroduce price caps on gasoline and diesel for October and impose an extraordinary 50% tax on refinery margins through 2027, addressing rising fuel costs amid escalating Middle East conflicts.
- Saudi Arabia halted October crude allocations to Europe while Houthi forces seized key ports in the Red Sea, compounding pressure from the closed Strait of Hormuz and disrupting refinery supply chains across the continent.
- The windfall tax applies through 2027 to companies with annual revenue above 2 billion crowns, effectively targeting Poland's Orlen, the sole operator of Czech refineries. The levy is expected to raise $260 million annually.
- Finance Minister Alena Schillerov said the measures will cost the state budget roughly $51.9 million for October, noting the tax should "help finance the costs that the crisis brought to consumers and public budgets."
- While the windfall tax awaits parliamentary approval, Germany, Spain, Portugal, Italy, Poland, and Austria have urged the Irish EU presidency to add similar refinery taxes to the September Ecofin agenda in Dublin.
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From October 1, the Prague government will reduce the margin at gas stations to a maximum of 2.5 Czech crowns per liter and the excise tax on diesel to 8 crowns.
EADaily, 22 September 2026. Czech authorities have been reinstating fuel prices since 1 October, as reported by Czech media.
This is the second similar measure taken by the government of Prime Minister Andrej Babis, after imposing a cap on fuel prices between April and July.
The Czech government has announced that it will reintroduce a price cap for petrol and diesel on 1 October. The targets will be updated every day. At the same time, the excise duty on diesel will be reduced to 8.011 kroner (33 euro cents) per litre. This is the lowest value permitted by the EU directives. The fuel price package initially only applies for a month, but can be extended. "This measure has a clear effect on inflation, is a relief for…
Czech government reinstates fuel margin caps, plans windfall tax on ...
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