The Czech Prime Minister, Andrej Babis, announced this Monday that the country will reapply a daily cap on fuel sales in response to the increase in prices in international markets.
"Starting from October 1, we will limit the margin of gasoline and diesel sellers to 2.50 crowns per liter (10 cents of euros) and, in the case of diesel, we will also reduce the consumption tax as much as possible to 2.35 crowns per liter (9 cents), as allowed by the EU," Babis explained on social media.
In practice, the Czech Ministry of Finance will publish daily the applicable sales caps for the following day, calculated based on the average wholesale prices of fuels from the previous three days. With this measure, Babis aims for the final price of fuels to be below 50 crowns (2.05 euros) per liter.
Additionally, the Minister of Finance, Alena Schillerová, detailed a reduction of the excise tax from 9.95 crowns to 8.01 crowns per liter, emphasizing that this is the minimum allowed by European Union regulations. Both the sales limit and the tax reduction will be applied throughout the month of October.
A practically identical mechanism had already been implemented previously in the Czech Republic, where it was in effect between April and July of this same year.