Introduction
The intensifying geopolitical conflict between Israel and Iran is beginning to impact global energy markets. One of the first visible effects is in the Czech Republic’s fuel prices, where diesel dropped below CZK 30 per liter in mid-April. However, analysts warn that this phase of cheap fuel may be short-lived.
April’s Historic Low Fuel Prices
In mid-April, drivers across the Czech Republic witnessed a rare event: diesel prices dipped below CZK 30 per liter. Discount fuel chain Tank Ono offered diesel for CZK 29.50, a price not seen since the COVID-19 pandemic or briefly in 2023.
Meanwhile, Natural 95 gasoline remained higher at CZK 31.90. These unusually low prices were made possible by a temporary dip in Brent crude oil, which fell to $60 per barrel.
Tank Ono: The Price Trendsetter
In the Czech fuel market, Tank Ono plays a key role. Every time the chain changes its prices, usually around 3 p.m., nearby competitors temporarily close, update their prices, and reopen. This behavior sends strong signals to the broader market.
On April 17, many motorists saw fuel prices beginning with a “2” again. However, by the following Friday, Tank Ono raised its diesel price to CZK 29.90, signaling the end of this short-lived price window.
Rising Oil Prices Push Fuel Costs Upward
Since early June, Brent crude oil prices have been climbing, rising from $63 to around $74 per barrel by mid-June. This increase is gradually reflected in refinery pricing.
The Unipetrol diesel index, including VAT, hit CZK 29.92 last Friday. Although major chains offer undisclosed discounts estimated to be between CZK 0.50 and CZK 1.00, Tank Ono had reached the limits of sustainable pricing and had to react.
Widening Gap Between Budget and Premium Stations
According to CCS data:
- Average diesel price: CZK 32.06 per liter
- Average gasoline price: CZK 33.64 per liter
On Czech highways, prices are even higher, with both fuels exceeding CZK 38.50 at some stations. That’s a 9-crown difference from budget chains, a spread rarely seen long-term.
Conclusion
Although April offered a brief relief for Czech drivers, the era of low-cost fuel is likely over. Rising crude oil prices and pressure from suppliers are driving a new upward trend.
According to Jiří Ondra, co-owner of Tank Ono, the next fuel price review could come as early as Monday or Tuesday. Until global oil markets stabilize, a return to April’s bargain prices seems unlikely.
AI – generated image.
