News By

Diesel Approaches 50 Crowns a Litre: Czech Hauliers Call on Government for Help

Diesel Approaches 50 Crowns a Litre: Czech Hauliers Call on Government for Help

Fuel prices in Czechia are climbing fast: a litre of diesel now sells for an average of 47 crowns, with some petrol stations edging close to 50 crowns. That's 14 crowns more than before the outbreak of the US-Iran conflict. Road hauliers have been hit hardest by the price surge, but experts warn the increase will soon ripple through to the price of virtually everything on store shelves — even ordinary pastries, since they too need to be transported.

According to Josef Melzer, president of the ČESMAD Bohemia haulage association, fuel accounts for 30–35% of a transport company's total costs. With prices up 14 crowns per litre, that adds roughly 5 crowns in extra cost for every kilometre driven. Economists expect oil and petrol prices to keep rising in the coming weeks.

Small Hauliers at Risk of Closure

Melzer explains that companies working under contracts with a fuel surcharge clause — which accounts for fluctuations in fuel prices — can gradually pass rising costs on to customers, though not immediately; it typically takes a month, a quarter, or even a year. But with spot-market transport, where the price is fixed at the moment the deal is struck, there's almost no room to do this — and it's precisely these contracts that make up the bulk of small hauliers' business.

"In the short term, pressure on a haulier's cash flow is more lethal than profit or loss itself. Any company that can't negotiate a price increase will be forced out of the market. And the smaller the firm, the less resilient it is," Melzer warns.

Cheap flights from Prague
One search across every airline and travel agency.
Find tickets
Sponsored

He says ČESMAD Bohemia is already seeing small operators with fleets of up to ten trucks exit the market, and a broader wave of industry consolidation could follow. Tens of thousands of firms currently operate in the sector, employing some 200,000 people.

Neighbouring Countries Have Already Stepped In

Melzer recalls that during the previous price spike, the Czech government cut the fuel tax — but this time, neighbouring countries have already taken similar steps while Czechia continues to hesitate. According to him, Poland, Spain, Romania and Croatia are introducing compensatory measures, while the Netherlands has temporarily scrapped its road toll.

"The key issue is price parity with our nearest competitors. If they bring in such measures and we don't, a gap opens up, and Czech hauliers lose their competitive edge," Melzer explains. He warns that domestic transport within Czechia could be snapped up by foreign companies that gain an advantage in their home markets — especially since foreign operators already make up 50% of hauliers on the Czech market. A modern truck can travel almost three thousand kilometres on a full tank, which makes Czechia, as a transit country at the heart of European logistics, particularly sensitive to price gaps with its neighbours.

Government Promised to Revisit Tax Relief

Melzer notes that back in July, authorities publicly promised to cut the fuel tax again if the situation repeated itself. "We're simply reminding them of a promise made publicly," he says, pushing back against the idea that a tax cut is merely a psychological gesture that needlessly strains the state budget. On the contrary, he argues, such a measure helps the whole economy curb inflationary pressure, since the rising cost of transport is ultimately always passed on to ordinary consumers through higher prices.

Prime Minister Andrej Babiš believes it's oil refineries that are the main beneficiaries of the current situation. According to Finance Ministry checks, the margin at Czech petrol stations doesn't exceed three crowns per litre, while refinery margins are noticeably higher. "The situation really is very critical. Over the past few months, since June, diesel has gone up by 8 crowns and petrol by 5 crowns, and since petrol station margins are genuinely low right now, we need to ask at the European level whether the refineries themselves are overdoing it," Babiš said.

Source: seznamzpravy.cz

Share: Telegram WhatsApp

Related news

  • today at 13:05
  • News
Czech schools and insurance companies are seeing a sharp rise in claims for pupils' injuries — from wasp stings to sunburn. While the overall number of childhood injuries has not grown, according to official statistics, the average payout p
  • today at 12:35
  • News
Czech meat-processing company Kostelecké uzeniny increased its net profit to 102 million crowns last year, while the company's revenue also grew — to 7.194 billion crowns, up from 6.89 billion crowns a year earlier.What the company doesThe
  • today at 12:05
  • News
An eighth-grader attacked a classmate and two teachers at a school in Slovakia. Police say they are investigating the incident as a serious violent crime. A 61-year-old teacher died from her injuries, while two other victims — a child and a
  • today at 11:20
  • News
Hungary has detained two former ministers from Viktor Orbán's government on suspicion of embezzlement and corruption: ex-culture minister Balázs Hankó and former regional development minister Miklós Sesták. On Monday, parliament stripped bo
  • today at 10:50
  • News
On the evening of 6 February 2025, on Prague's Smíchov embankment, municipal police officer Štěpán Nožička struck pensioner Zdenka Zemanová in the face, knocked her to the ground and handcuffed her. Zemanová had spent fifteen years feeding
  • today at 10:20
  • News
A court has cleared the company FAU from Přerov of tax evasion charges, ruling bluntly that the business was destroyed by unlawful pressure from the tax and customs administration in 2016–2017 — at the time, both agencies fell under the fin
  • today at 09:30
  • News
The US Department of Justice has accused Oxygen Forensics, a company formally registered in Virginia, of actually being secretly owned and run by Russian citizens. The firm develops digital forensics software that extracts and analyzes data
  • today at 09:00
  • News
Czech economists are tracking a fresh rise in energy prices: since the outbreak of the Gulf conflict, oil, natural gas and electricity have been getting more expensive on world markets, while from 1 October the government is simultaneously
  • today at 08:30
  • News
At last week's Czech cabinet meeting, government office head Tünde Bartha — a close ally of Prime Minister Andrej Babiš (ANO) — unexpectedly handed ministers a document demanding that they cut staff by 10% by 1 January 2027 in their own min
  • today at 07:45
  • News
Czech farmer and forester Libor Lev, who lives in the foothills, has criticized the country's current approach to fighting drought. Based on his many years of observation, an ordinary field holds back around 25 mm of rainfall during prolong
  • today at 07:15
  • News
The Czech government has concluded difficult negotiations over the final version of next year's budget. The originally planned deficit of 389 billion crowns was trimmed by only three billion, to roughly 386 billion, and the structure of spe
  • today at 06:45
  • News
In late 2023, the Czech Ministry of Defence transferred an advance of 17.6 million crowns to the Prague-based firm Summit Advanced Systems for ten American Osprey-H drones — the equipment was never delivered, and the money was dispersed to