Prague Caps Fuel Prices, Taxes Orlen's ‘Windfall’ Refining Margins
The measures will cost the state budget 1.1 billion crowns, while a proposed refinery windfall tax could raise 5.5 billion crowns in 2026.
- 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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43 Articles
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.
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.
Czech government reinstates fuel margin caps, plans windfall tax on ...
The Czech government will re-regulate fuel prices from October 1st: the Ministry of Finance will set maximum prices daily based on stock exchange prices. According to the decision, the sales tax on diesel will be reduced, while that on gasoline will remain unchanged. In addition, the government will impose an extraordinary tax on oil refineries, taxing the excess over their profits from last year. The measures were necessary because gasoline and…
Due to expensive fuels, the government will restore price regulation at gas stations. From October 1, it will cap margins at 2.50 crowns per liter and at the same time reduce the excise tax on diesel by 2.35 crowns including tax. The Ministry of Finance announced this on Monday. The cabinet is also introducing an extraordinary sectoral tax for oil processors.
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