Due to rising fuel prices, the Chamber of Commerce is proposing that the state reduce their price through the state fuel distributor Čepro. The company is one of the largest fuel wholesalers in the Czech Republic and also operates a network of 200 filling stations. According to the Chamber of Commerce, if the price at Čepra stations decreased, the price at the surrounding filling stations would also fall, the chamber announced.
Čepro operates a network of EuroOil filling stations. According to the Chamber of Commerce, the state can legitimately demand that Čepro sell petrol and diesel at a reasonable margin at its filling stations, as well as sell wholesale fuel with a defined margin in wholesale trade. Thanks to this, Čepra filling stations will keep a minimum price level that will cover the costs claimed by the chamber.
“And because there are plenty of them on the market, they will affect their surroundings. And even if someone sells significantly more expensive, customers will be able to choose whether to refuel at an expensive retailer or a retailer with a ‘normal’ price. It will work for wholesale as well. level, through the distributors the capped price will reach independent gas stations,” said Vladimír Dlouhý, president of the Chamber of Commerce.
“As part of the crisis infrastructure, Čepro performs the tasks of a shareholder (Ministry of Finance), the Ministry of Industry and Trade and the government. We are ready to perform all tasks for the State Material Reserves Administration (SSHR),” according to Čepra spokesman Marek Roll.
Fuel prices at Czech filling stations continue to rise. A liter of Natural 95 costs an average of CZK 43.51, a liter of diesel CZK 45.32. Diesel is rising faster, its price has risen by CZK 1.17 in 24 hours, and petrol has risen by 74 pennies over the same period. This is according to data from CCS, which monitors average fuel prices.
According to the Chamber of Commerce, however, it will be crucial for the state to determine what is considered a reasonable margin. Čepro owns and operates the largest Czech network of filling stations under the EuroOil brand. It currently operates 200 filling stations throughout the Czech Republic, which ranks it third in the number of filling stations and fourth in terms of fuel sales.
Yesterday’s meeting of the Presidium of the Chamber of Commerce dealt with the issue of rising prices, which discussed, in addition to the solution of price reductions through Čepro, the possibility of non-market regulatory instruments to reduce the price of fuels and energy.
According to the economists contacted, the price of fuel could climb over CZK 55 per liter, and in the worst cases even over CZK 60. “Estimates of renowned American banks assume that the price of oil will rise to 160 to 180 dollars per barrel. At these oil prices, average fuel prices would be slightly above CZK 55 per liter,” said BH Securities chief economist Stepan Křeček. According to him, this could bring the Czech economy closer to the stagflation scenario, so it can be expected that the government will react to the situation. “For these reasons, I think we will not get into a situation where average fuel prices exceed 60 crowns per liter,” he added.
Source: CTK
Photo: EuroOil
