The increase in transportation costs in the Czech Republic presents itself as a multifactorial phenomenon. Although this increase may cause concern, it should also be interpreted as a sign of the country’s determination to integrate with European directives aimed at improving the environment. In fact, the rise is not exclusively attributable to price increases, but is also influenced by the increase in toll costs, in accordance with the requirements of European Directive No. 362/22.
Increased fuel cost
According to the Carbon Capture and Storage (CCS) data, the increase in fuel prices in the Czech territory will continue to grow. Currently, the price level is the highest since November of the previous year. According to Purple Trading analyst Petr Lejsek, the main causes of these increases are the devaluation of the currency and tensions in the Middle East causing the cost of oil to rise. While in mid-January the price of diesel and gasoline amounted to about 36 crown, in the following February Natural 95 cost about 38 crown while Nafta 39 crown.
According to the findings, the cost of fuel in a single month has increased by about 12 cents per liter, a number that is apparently not high but could still create future issues. According to XTB analyst Jiří Tyleček, “The price of diesel fuel could increase by up to 50 cents per liter and the price of gasoline by up to 40 cents per liter.”
Compliance with European directive: toll increase
In addition to rising raw material costs, a further cause of rising transportation costs is related to a 15% increase in tolls based on CO2 emissions. In March 2022, EU Directive 362 of the European Parliament required member states to introduce taxation in order to accelerate the decarbonization of the land transport sector. This directive provides for the setting of different tariffs according to the membership in one of the 5 emission classes of trucks based on the established European measures. In favor of this, from January 2019, all new trucks sold in the European territory above 3.5 tons must be accompanied by a certification on CO2 emission and fuel consumption, created by VECTO.
As required by the regulations, all heavy-duty vehicles will initially be classified into CO2 emission class 1, whose rates are the highest and to which more than 90% of vehicles belong. Each unit will then be reclassified in the correct manner up to class 5, which is reserved for zero-emission vehicles. However, vehicles registered before July 1 2019 will automatically be placed in class 1.
In accordance, following the example of Germany and Austria, an increase in highway tariffs will be implemented in the Czech Republic as of March 1. However, the tariffs currently in effect will be maintained until March 25 due to calculation errors found by Ministry of Transport officials. The Ministry decided to issue the temporary tariffs anyway so that the rules would be clarified in advance and carriers could understand how they would work. Differing views on the issue were expressed by the national haulers’ association Česmad Bohemia, which said the changes will lead to an immediate increase in transport prices, and Transport Minister Martin Kupka, who said the impact of the tolls on truckers’ budgets will still be minimal.
Conclusions
In conclusion, rising transportation costs pose a significant challenge to the industry, with toll and fuel price increases having a direct impact on transportation operations. It is crucial to recognize that this increase is not only an economic issue related to currency and geopolitical tensions, but also a response to the need to comply with European environmental directives. This is critically important in addressing current environmental challenges and accelerating the transition to a low-carbon economy.
Although rising transportation costs may pose immediate challenges for businesses, in addition to the short-term negative impacts, people can still consider the long-term effects on our environment and the well-being of future generations. It is therefore important that governments, businesses and stakeholders work together to develop sustainable strategies that effectively balance economic and environmental needs to ensure a more sustainable and resilient future for all.
Sources: https://www.ceskenoviny.cz/zpravy/pohonne-hmoty-v-cesku-dal-zdrazovaly-o-desitky-haleru/2479787 https://ct24.ceskatelevize.cz/clanek/domaci/zive-vlada-schvalovala-rust-mytneho-346048
Graphic source: https://storyset.com/
Image source: image generated by artificial intelligence
