Fuel prices in the Czech Republic fell at the beginning of the year. Last week, Natural 95 petrol fell by an average of 12 pennies to 27.92 crowns per liter, diesel is cheaper by 17 pennies and costs an average of 27.32 crowns per liter. This is according to data from CCS, which monitors prices. Analysts expected a reduction in the price of diesel due to a reduction in the excise tax, and lower fuel prices, according to them, are also due to the development of the koruna’s exchange rate against the dollar.
From 1 January, the rate of excise duty on diesel was reduced by one crown per liter. This will be reflected gradually in the prices of petrol stations, depending on how the sellers deplete the stocks of diesel purchased last year.
“Due to the reduction of the excise tax on diesel, average diesel prices will fall by about the koruna per liter in January. The tax on petrol has not changed and its price should stagnate in the coming week. The price of Brent oil jumped to $ 54 per barrel. on final fuel prices at the end of January, “Finlord analyst Boris Tomčiak told ČTK.
He said the price of oil was being pushed up by Saudi Arabia’s willingness to voluntarily extract less oil in February and March because it fears overproduction. “The Czech koruna, on the other hand, continues to strengthen against the US dollar, which dampens the effect of rising oil prices,” he added. Dollars are traded on the Rotterdam Commodity Exchange. The stronger the koruna against the US currency, the cheaper petrol and diesel can be at petrol stations in the Czech Republic.
Václav Loula from the Czech Association of Petroleum Industry and Trade (ČAPPO) stated that he does not expect fuel prices in the Czech Republic to rise above 30 crowns per liter during the winter. “The decisive factor for the price of oil is and will be the development of the economy and demand. In addition, in the Czech Republic these days the excise tax on diesel is reduced by a crown per liter.
However, according to Trinity Bank chief economist Lukáš Kovanda, both petrol and diesel prices in the Czech Republic will rise in the coming weeks due to rising oil prices, despite the fact that it has reduced its excise tax. “Brent oil has risen to its 11-month high this morning, with one barrel now selling for almost $ 55. It has never been so expensive since the covid-19 pandemic,” Kovanda said.
Purple Trading analyst Štěpán Hájek has a similar view. “Fuel is now slightly cheaper, but the beginning of the year indicated that we can probably expect an increase in prices of up to 50 pennies in the coming weeks. The reason is an additional reduction in production by another million barrels a day from Saudi Arabia , “he told ČTK today.
The cheapest fuels are now refueled by drivers in the Ústí nad Labem Region, where a liter of petrol is on average 27.48 crowns. They sell diesel there for an average of 26.90 crowns per liter. On the other hand, the most expensive fuels are offered by pumps in Prague, where a liter of petrol costs an average of 28.65 crowns. Drivers will buy diesel there for an average of 28.28 crowns per liter.
According to CCS, petrol is now more than four crowns per liter cheaper than a year ago, when motorists paid 4.56 crowns per liter more for diesel.
