- Hans Weber
- November 30, 2023
Surge in Global Fuel Prices Drives Fuel Price Increases in the Czech Republic
Fuel prices in the Czech Republic have experienced a notable uptick in recent weeks, driven by a substantial increase in global fuel prices. Both diesel and gasoline prices have surged, with some gas stations raising the price of Natural 95 by nearly three Czech crowns per liter. This surge comes as a result of a sharp rise in fuel prices on the stock market since the start of the summer holidays.
Data from the company CCS reveals that the average price of gasoline in the Czech Republic reached 38.07 CZK per liter on a recent Tuesday, marking an 18-haler increase from the previous day. While the rise in gasoline prices is relatively moderate, diesel prices have seen a more significant increase, rising by an average of 71 halers. The trend of rising fuel prices has been steady over the past few weeks.
Even reputed low-margin gas stations, such as Tank ONO, had to raise gasoline prices by a full crown on a Tuesday afternoon. Similarly, the company increased diesel prices by two crowns following a fuel tax hike.
Experts point to the situation in the global fuel market as the primary driver of the price increases. Since the beginning of the summer holidays, fuel prices on the Rotterdam stock market have shown significant growth, with diesel prices soaring by almost 27% and gasoline prices by 17% in July alone.
While some traders might have capitalized on the fuel tax increase for diesel to raise gasoline margins, analysts believe that the prevailing situation in the fuel market justifies the substantial price hikes at gas stations.
Unfortunately for drivers in the Czech Republic, the upward trend in fuel prices is not expected to subside anytime soon. Further increases are anticipated in the coming weeks as the retail market gradually adjusts to the escalating global fuel prices. Nevertheless, experts anticipate that the global fuel market will eventually experience a correction, leading to price stabilization.
According to Jiří Tyleček, an analyst from XTB, the average gasoline price in mid-August may climb to around 39 CZK per liter, while diesel prices could approach 36 CZK per liter. However, these forecasts are subject to change depending on the evolving situation in the fuel market.
For Czech motorists, this means an inevitable increase in expenses at the pump in the near future. The extent of the price hikes and the duration of the upward trend remain to be seen, with consumers keeping a close eye on fuel prices in the coming weeks.
Article by Prague Forum