Babiš on expensive petrol: there's almost nothing we can do about prices, wars are to blame

Czech Prime Minister Andrej Babiš said in his traditional Sunday video address on social media that the sharp rise in petrol and diesel prices in the country is linked to the war in Ukraine, the fighting in Russia and the crisis in the Middle East, adding that the government's ability to influence the situation is currently extremely limited.

"Oil prices are rising, but not nearly as fast as fuel prices. Fuel is getting more expensive because of a global shortage of refining capacity, and Europe doesn't produce enough on its own," Babiš explained. According to him, the issue was recently discussed by the Visegrad Four countries, and the conclusion was disappointing: "At the moment, we don't have the means to significantly influence this."

What's changed since spring

Babiš recalled that the spring price surge was tied to the US and Israeli war against Iran, and that the government had temporarily capped trade margins and cut the fuel excise tax at the time — a move that brought highway prices down to as low as 52.50 crowns per litre. That cap was lifted at the end of June, once neighbouring countries did the same and the need for support eased.

Complaints against refineries

The prime minister said another issue lies with the excessive profits of oil refineries and EU-wide regulation of the sector. "We have refineries that are making profits beyond all reason, and this is a Europe-wide problem we want to address, because it's unacceptable," Babiš said. He proposed suspending the ETS1 emissions trading scheme for oil refining, as well as not launching the planned ETS2 system, which is due to take effect in 2028.

Fuel prices hit highest level since 2022

After dropping ahead of the summer holidays, petrol and diesel prices have surged again sharply in recent weeks — according to available data, fuel in Czechia is now more expensive than at any point since 2022. Natural 95 petrol rose by an average of 1.88 crowns over the week, reaching 44.22 crowns per litre, while diesel climbed by 1.9 crowns to average 47.79 crowns per litre on Wednesday. At some petrol stations, particularly along the motorways, diesel prices have already topped 50 crowns per litre.

Source: novinky.cz