Fuel prices are clearly not ending, the price of gasoline and diesel is rising. This is information that resonates through all media. No, it’s something that affects us all. Both drivers and non-drivers. Rolls, toilet paper, fruit, they all have to somehow get on the store shelves. By car that runs on diesel and gasoline. Shipping costs are then reflected in the price, it’s a vicious circle. Fuel prices in the Czech Republic are therefore rising.
Why is the price of gasoline and diesel increasing? Because the pumpers want to
Over the last week, the average price of a liter of the best-selling Natural 95 gasoline increased by 28 halers and reached the value of 40.40 crowns. The price of diesel also rose by three halers per liter and reached an average of 39.22 crowns. Analysts say the rise in petrol and diesel prices is a result of rising oil prices. While further increases in gasoline prices are expected, the price of diesel should rather stagnate. Compared to the previous year, gasoline is now 2.71 crowns more expensive per liter, while diesel has increased by 5.54 crowns per liter.
This means that the price of gasoline exceeded 40 crowns per liter for the first time since last October, while the price of diesel reached the highest level since last November. According to analysts, not only high oil prices but also seasonal factors are reflected in current fuel prices. As summer approaches, the demand for gasoline increases, which is reflected in rising prices. Despite the slight drop in oil prices, the current price remains above average, which is due to geopolitical tensions and restrictions on oil exports from Russia.
Now is the perfect time to find out what the price of a liter of fuel consists of. The first and most important factor influencing the price of fuel is the price of oil. It depends on many factors, such as the quality of the technical composition of the oil, the geopolitical situation in the oil-producing countries, the exchange rate, the margins of mining companies and the cost of transportation. Next is the refinery margin. There are de facto two refineries in the Czech Republic that process crude oil into gasoline, diesel and other products. The margins of these refineries affect the final price of fuel.
But we can still talk about the fact that this is the starting position for most gas stations. The margin of gas stations is thus another factor. And here it’s about where and which pump sets its price. Consumption tax is mandatory. These are mineral oil tax rates that are set by law. Consumption tax is a fixed part of the price of fuel. All this forms the basis from which VAT is calculated. And it is then added to the base.
Gasoline could easily cost ten crowns less, diesel too
The paradox is that tax is paid on fuel. Nonsense. But that’s right, value added tax calculated from consumption tax is paid. State, great. However, the consumption tax for gasoline is CZK 12.84/l, diesel is CZK 9.95/l. VAT is 21%. Given that, two refineries, it follows that the biggest variable is the margin of gas stations. One then has to ask how it is possible that in one day one can buy a liter of diesel for CZK 35.90 and a liter of Natural for CZK 38.90 at one gas station.
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Then just drive a few kilometers elsewhere and the situation is like from the opposite end of the world. At another pump, a little further away, you pay CZK 40.90 for diesel. That’s exactly 5 CZK for one liter! For Natural then 41.90 CZK, 100-octane even 46.70 CZK? The same starting conditions, but one pumper gets five kroner more in his pocket for one liter. Both the state and the gas station operator will make money, but we will pay for it.
