The government has decided to regulate fuel distributors’ margins at 2.50 crowns per liter from next Wednesday until the end of the month. The consumption tax on diesel, including VAT, will also decrease by 2.35 crowns per liter. How much could gasoline and diesel prices drop?
If we were to start from today’s purchase prices, which are calculated according to the clear formula of the Ministry of Finance, the price would be 46.40 crowns. Every day it will depend on an averaged calculation from market prices.
When we were looking for appropriate measures, we clearly said that we would proceed with caution and we had to balance it from several points of view.
First of all, to have enough fuel. Secondly, that it should be in acceptable price ranges that correspond to the Central European market. Also, so that it has a balanced impact on both household and professional drivers, for example when supplying, for companies and businesses.
And to have a reasonable impact on the state budget and at the same time to be in accordance with the requirements of the European Union, that is, to avoid chaos and unpredictable steps taken by some countries around us.
We discussed all this with experts and also at the level of the Union. We approached the solution that seems to be the most optimal at the moment. I appreciate the work of the Ministry of Finance, which prepared it professionally and at the right time.
Were other measures possible? Why did you finally decide on capping margins and reducing consumption tax?
We considered all possible measures, but this is very reasonable considering the need to balance all influences.
There was quite a lively debate at the European Energy Council this week. Some states chose unpredictable steps that were not consulted with other countries, and then the so-called diesel or gasoline tourism begins to work, when people from neighboring states come to pump cheaper and gas stations dry up.
It is starting to strongly resemble the chaotic year 2022 after the invasion of Ukraine, when each country did what it wanted.
Did your plan pass in the Council of the European Union?
We strove for our measure to have a positive impact on the domestic environment and at the same time not disrupt the Central European market, which we succeeded in doing.
The intention that we presented was received very positively, among other things we agreed there, for example, with Germany.
On the contrary, there was criticism of the unpredictable steps of some countries. For example, when somewhere there is a jump in the value added tax, as in Poland, without the other states being notified.
The dual prices for domestic and foreign consumers and the limited refueling options they have in Slovakia were also criticized.
In addition, we announced the measures several days in advance.
Who will control the margins and what is the threat to the operator if he violates the regulation?
The price will be determined every day by the Ministry of Finance, with the fact that it has a special formula based on wholesale fuel prices and the stock market. This will be averaged and every day will be a perfectly fair price.
A maximum surcharge of 2.50 crowns is added to this, and all customers will see what the maximum market price is for that day. Thus, they will be able to check it easily.
If someone does not comply, the Ministry of Finance will intervene and impose a fine of up to one million crowns.
According to your data, how high are the gas station operators’ margins now?
They are at different levels. It was calculated differently by the big players and differently by the smaller ones.
We consulted on the measures not only at the European level, but also with the state company Čepro and we met with all the main players on the Czech market. They told us that a margin of between two and three crowns is acceptable for them and that they can work with it at the given moment without any problems.
So we did not take any ill-advised step that would eliminate their business. Some may say that it has higher costs on the highway, but it undoubtedly has lower costs at other gas stations.
It is an absolutely extraordinary period, and we tried to act fairly towards everyone, so that there would be an impact on the gas station operators that would not destroy them.
A week ago, Prime Minister Andrej Babiš (ANO) called on big retailers to lower prices on highways, and that happened. Do you think that this was a consequence of his appeal, or was it a reaction to the development of wholesale prices?
We have to follow the path of both the appeal and the legislative path. With its statement, the government can partially influence something in the short term, and I must say that some operators really reacted. But the appeal is not enough in the long run.
Diesel prices have stopped rising sharply this week. Does this mean that the average price of fifty crowns per liter of diesel will not come?
Hard to say. No one has an oracle, and every statement by US President Donald Trump has an immediate effect on stock market prices.
We cannot rely on the situation to calm down by itself. On the other hand, we cannot even give in when, for example, the opposition tells us to immediately reduce the consumption tax. This makes sense only when the margins are capped.
If we were to follow the opposition’s recommendations, it would cost a lot of money for the loss of income, but in the end it would not be reflected in the prices for consumers at all, because the operators would hide it in their margins.
What impact will high prices, especially diesel, due to the war in Iran have on the economy and inflation?
We have to look at it from a short-term and a long-term perspective. What we have adopted now is an anti-inflationary measure. Among other things, it can be seen that even the step by which we exempted consumers and companies from the so-called green tax, i.e. the fee for renewable resources, from January, clearly had an anti-inflationary impact. Inflation looks very good thanks to the reduction in energy prices for the first two months.
How it will look in the long term is difficult to predict. If the conflict in Iran were to last for a longer period of time, it will have a negative impact on price growth, regardless of what measures individual countries implement.
We promised citizens and companies that we would not allow a situation similar to the one in 2022 to occur, when we were among the countries with the highest energy prices. And we follow that. If you look at energy inflation for the first three months, we are among the top three countries in the entire European Union.
Doesn’t the crisis, when not only the export of oil and diesel, but also liquefied gas LNG, is blocked from the Middle East, play into the cards of renewable sources? Suppliers in the Czech Republic are already raising the price of gas.
I don’t think it would work for them. Rather, it plays into the hands of those who say – and we are among them – that we need to manage energy not ideologically and politically, but at the level of physics, logistics and economics.
Of course, also with regard to the relevant geopolitical pressures. We must diversify resources, ensure energy security and not be influenced by ideologues.
According to the Minister of Finance, Alena Schillerová, the measure on fuel prices should have an impact on state revenues of about 800 million crowns. Did you consider increasing the state budget deficit because of the crisis in the Middle East?
We are not thinking about it at the moment. If it will be a short-term issue, we can save money somewhere else.
It is true, however, that with all the measures that must be taken at the precise and right moment, we must also monitor the impact on the state budget. If it takes a long time, then we have to open the debate on the state budget.
The government has decided to release one hundred thousand tons of oil from emergency stocks, the reason being maintenance on the TAL oil pipeline, from where oil flows to the Czech Republic from Trieste in Italy via Ingolstadt in Germany. But your predecessor Lukáš Vlček (STAN) called it irresponsible.
It was a rational decision, otherwise there would be a shortage of fuel. We consulted carefully with the oil pipeline operator MERO, with the state distributor Čepro and with the State Material Reserves Administration.
The reason was actually the planned long-term maintenance of the TAL pipeline at a time when demand is higher. There was a threat that the refineries would not have enough oil. So now we have no shortage and no escalation of fuel prices.
I do not understand the reaction of Mr. Vlček, who proved that he did not understand the basic energy multiplier. I recommend that he, before spouting such nonsense, inform himself, call MERO, the Material Reserves Administration or Čepro. If it was up to him, we’d be dry now.
This week you also announced the billion dollar investment of the German Daimler Truck in the truck factory near Cheb. How do you rate it?
I’m happy about it. We have proven that even without investment incentives, we can attract famous investors, because Daimler Truck is a premium brand.
In the last four years, we have become accustomed to the fact that if an investor comes here, he must be bought out expensively. And usually a new one didn’t even come, but rather an existing one expanded its investment, with huge subsidies from the state.
In this case, we used the state developer SIRS for the first time, who bought plots of land, networked them and sold them to an investor. We will get a prestigious investor who will employ one thousand and one hundred people. It will have a highly positive impact on the entire region and will result in considerable income for Cheb.
I appreciate it especially because it was decided between us and Poland. This offered slightly better conditions, and yet in the end the investor decided on the Czech Republic, mainly because of the state’s professional approach and certain guarantees resulting from the land and the fact that it will already be ready, for example energy connections.
Won’t it just be another assembly plant in the Czech Republic?
That’s nonsense. This is a prestigious brand that will produce twenty-five thousand trucks per year.
Is it a similar or even larger investment?
Yes, but I don’t want to publish any names right now. In any case, the government’s goal will not be to compete in subsidies, but to create interesting conditions for investors from the point of view of energy price stability, a stable labor market, quality employees and acceptable tax deductions, such as depreciation.
I understand that sometimes you can throw in an extra bonus in the form of an investment incentive in cash. But our goal is not to do it in such a way that gigantic incentives are offered first and then the rest is dealt with.
It is not normal for us to buy companies for units or even more than ten billion, as was the case in the past period, and at the same time they came here in an unpredictable environment with high energy prices.

Karel Havlíček
A former businessman in the companies Sindat, SinBio and in the Nanoprogress research cluster, he entered politics eight years ago.
In 2019, he sat in the ANO and ČSSD government as a non-party member. He managed the Ministry of Industry and Trade.
He joined ANO two years later. He was already in charge of two ministries when he also took over the management of the Department of Transport. He is still the head of the industry department in the third government of Andrej Babiš.
In the past, he was also the head of the Association of Small and Medium Enterprises and Tradesmen of the Czech Republic.
