The Czech government has reinstated a CZK 2.5-per-litre fuel margin cap and cut diesel tax to the EU minimum for October, while proposing a 50% windfall tax on increased refinery margins for 2026–2027.
The Czech Republic’s Ministry of Finance moved to cap retailers’ fuel margins and reduce diesel taxes for October following escalating conflict in the Middle East and tightened oil supplies from Saudi Arabia. The government also approved a new windfall tax on refineries set to take effect in 2026 and 2027.
Retail price caps return
Price controls on petrol and diesel ended in July, months after the government introduced them in April when US and Israeli military strikes on Iran triggered sharp increases in global oil prices.
The latest reinstatement establishes a retail margin cap of CZK 2.5 per litre for both fuels. Additionally, the diesel tax drops to match the European Union minimum threshold. These measures apply only during October and will cost the state budget CZK 1.1 billion.
Tax on refining profits
The government’s second measure targets the refining sector through an extraordinary tax covering 2026 and 2027. The tax will equal 50% of any increase in gross margins compared to 2025 levels. This provision applies to Orlen, the Polish operator that runs the Czech Republic’s only refinery.
The Finance Ministry expects this windfall tax to generate CZK 5.5 billion for the budget in 2026.
Parliament must still vote to approve the windfall tax.
