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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure CZ-2026-15/4217 – measures in Czechia

Reducing the tax on diesel to the lowest possible level

Snížení daně na naftu na nejnižší možné minimum

Country Czechia , applies nationwide
Time period Open ended, started on 08 April 2026
Context Cost of Living Crisis
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for fuel expenses
Author Marcel Navrátil
Measure added 28 May 2026 (updated 22 June 2026)

Background information

From the start of the conflict in the Strait of Hormuz to April 2026, the price of diesel in Czechia rose by approximately CZK 15 (€0.62 as at 28 May 2026) per litre. In response to the sharp rise in fuel prices, the Ministry of Finance has developed a package of measures designed to mitigate the impact of rising fuel prices on businesses and households and to reduce the negative impact on inflation and the economy. The package also includes a reduction in the excise tax on diesel.

Content of measure

The Ministry of Finance has issued a general measure waiving a portion of the excise tax on diesel and related blends for taxpayers, specifically in the amount of CZK 1,939 (€79.8 as at 28 May 2026) per 1,000 litres. After taking value-added tax into account, the total tax impact of the measure is CZK 2,350 (€96.7 as at 28 May 2026) per 1,000 litres. Following the implementation of the measure, the new excise tax rate on diesel amounts to CZK 8,011 (€329.7 as at 28 May 2026) per 1,000 litres. This brings the excise tax on diesel in Czechia to the minimum allowed by EU regulations. According to the Ministry of Finance, the measure is specifically targeted at diesel due to its significant impact on industry, supply chains and transport. The measure was introduced on 8 April 2026, with an initial validity period until 30 April. Subsequently, on 27 April, a government decision extended it through May, and on 25 May, it was decided to extend it through June 2026.

Use of measure

No detailed information is available on the number of beneficiaries of this measure. According to the Ministry of Finance, the budgetary cost of the measure is approximately CZK 1 billion (€41.15 million as at 28 May 2026) per month. According to the Ministry of Finance, a combination of measures to lower diesel prices (a reduction in the excise tax on diesel and a cap on fuel sales margins) has led to an average savings of CZK 400 CZK (€16.5 as at 28 May 2026) per full tank. Before the measures were introduced, the price of diesel in Czechia was the eighth lowest in the EU. Since the measures took effect, the price of diesel at Czech filling stations is the third cheapest in the EU.

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

no involvement

Views and reactions

The Confederation of Industry and Transport of the Czech Republic welcomed the rapid implementation of the reduction in fuel excise taxes. On the other hand, it highlighted the risks of long-term price regulation.

Sources

Citation

Eurofound (2026), Reducing the tax on diesel to the lowest possible level, measure CZ-2026-15/4217 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2026-15_4217.html

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