As we have informed you in our earlier articles, last year, in connection with the war in Ukraine, the government approved a reduction of excise duty on petrol and diesel by CZK 1.50 per litre (for more information, see here), with the lower rate to apply only from 1 June to 30 September 2022. However, the temporary reduction in the diesel tariff was subsequently extended, initially until the end of 2023 (see here for more information). However, due to a significant decrease in fuel prices recently, the government decided to shorten the period of validity of the reduced excise duty rate. According to Finance Minister Zbyněk Stanjura, the price of diesel in the Czech Republic was one of the lowest in the entire European Union in April. The lower tax rate is thus no longer justified. We will keep you informed of further developments in the legislative process.

Author: Lukáš Pflug, Tereza Horáková