After several months of rising prices, average fuel prices are falling for the second week in a row. According to analysts, the discounting should continue in the coming days. Diesel is more expensive than gasoline for the first time since January, they warned.
Drivers in the South Bohemian Region fill up with the cheapest fuel. A liter of gasoline costs 39.21 crowns on average and 39.77 CZK for diesel. Conversely, pumps in Prague offer the most expensive fuel. Gasoline costs an average of 41.16 crowns per liter in the capital. Motorists fill up with diesel for 41.26 crowns.
According to Purple Trading analyst Petr Lajsko, several factors are behind the current drop in fuel prices. The main one is the correction in the oil market, where Brent has fallen significantly since the beginning of October due to concerns about global demand at current levels of interest rates around the world. According to Lajsko, the strengthening US dollar also has an influence on the drop in oil prices. Another factor is the recent announcement by the OPEC cartel that its production volume will not change until the end of the year. On the other hand, the conflict in Israel prevented a more significant drop in prices.
“In the coming week, we are expecting a further drop in petrol prices at gas stations by more than 50 shillings per litre. For diesel, we expect a price reduction of 30 pennies per liter,” said Lajsek. XTB analyst Jiří Tyleček also sees further discounting as likely, but he pointed out that the potential for further discounting may reduce the weakening of the Czech currency. At the same time, he recalled that a possible major escalation of the current geopolitical tension in the world, especially currently in the Middle East, could significantly increase the price of oil and subsequently fuel in the future. However, he sees the probability of this scenario as low.
The head of the 4Trans company, Jaroslav Ton, expects that unless there are significant changes in the market, the price of gasoline will fluctuate within a few pennies, with an upper limit of CZK 39.50 per liter. For diesel, he expects a drop of a maximum of tens of pennies, with a day around CZK 39.50 per liter.
Fuel prices in the Czech Republic started to rise at the turn of May and June of this year. The increase in prices accelerated significantly at the beginning of August, when the increase in excise duty on diesel fuel by 1.50 kroner per liter contributed to it. Only in the last two weeks or so have fuel prices been falling.
Despite previous significant price increases, average fuel prices are now lower than a year ago. Gasoline is cheaper by more than 1.50 crowns, motorists then paid approximately 4.60 CZK per liter more for diesel than today.
Average fuel prices in the Czech Republic as of October 11, 2023 (in CZK/l):