Havlíček noted that although current prices remain slightly below those seen in 2022 under the previous government, inflation has eroded purchasing power. Factoring in nearly 35% inflation since 2022, the equivalent of today’s prices would be 60 to 70 crowns per litre. “This is a threshold we cannot afford to wait past,” the deputy prime minister stated. The Czech government is currently holding intensive consultations with neighbouring countries, considering measures such as setting a maximum margin for fuel sellers and reducing the excise tax on diesel.
The domestic fuel price spike is a symptom of a broader European energy shock. Havlíček warned that Europe has effectively entered another energy crisis, driven by the ongoing conflict in the Middle East. A month ago, a megawatt-hour of gas traded at 60 euros on the exchange; the price has since risen to approximately 80 euros, a one-third increase. While the Czech Republic faces no immediate risk of gas shortage—with storage facilities 74% full, placing it among the top seven in Europe—the price increases are already embedded in long-term contracts. These hikes will become fully visible next year, directly impacting the upcoming heating season. The timing of price fixing varies among consumers and traders, but the financial impact is already altering market behavior.
Electricity prices are also rising, a trend closely linked to gas costs. On the day-ahead market, a megawatt-hour of electricity recently cost around 160 euros. This disparity is stark when compared to the United States, where gas trades at approximately 8.5 euros per megawatt-hour—nearly ten times cheaper. Havlíček criticized the European Union’s decarbonisation policy as “completely unreasonable” under these circumstances. He argued that Europe should immediately abandon plans to introduce an emissions quota system for households, known as ETS2, which would further push heating and fuel prices upward. Additionally, he called for the suspension of the existing quota system for large industrial enterprises in at least some sectors.
The Czech Republic has found mutual understanding with Bulgaria on this issue and is in talks with Italy and ten other European nations. The European Parliament recently approved an adjustment to the household quota system intended to stabilize prices by releasing additional permits if the price exceeds a threshold of 45 euros in 2020 prices. However, Havlíček dismissed this measure as insufficient, describing it as “sugar-coating a sour pie.” He emphasized that rising fuel, gas, and electricity prices cannot be taken lightly, asserting that the primary task for responsible politicians in Europe is to find ways to soften the impact on consumers and industries.
As the government finalizes its decision on fuel controls, the focus shifts to how effectively domestic measures can insulate Czech consumers from volatile wholesale markets. The interplay between refinery logistics, geopolitical conflict, and EU regulatory frameworks remains the central challenge, with the upcoming heating season serving as the first major test of the government’s new interventions.
