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Fuel prices are rising, they are being pushed up by the rising price of oil

According to Trinity Bank chief economist Lukáš Kovanda, the price of oil will continue to rise, and thus the price of fuel at gas stations in the Czech Republic.

For the first time in seven years, the price of Brent North Sea crude rose above $ 90 per barrel. Geopolitical tensions in Europe and the Middle East, which could disrupt market supplies, are contributing to growth.

According to Kovanda, three leading American banks are now forecasting that the price of oil will reach the level of $ 100 (almost CZK 2,200) per barrel by the middle of this year.

“If, for example, a barrel of Brent cost some $ 105 more permanently in the middle of this year, so it would be about $ 15 more expensive than it is right now, fuel will, of course, continue to become significantly more expensive,” Kovanda said.

High oil prices are now slightly eased by the strong koruna.

According to the consensus of international foreign exchange market analysts, according to Bloomberg, the koruna should weaken against the dollar by the middle of this year, from the current exchange rate of approximately CZK 21.72 to CZK 22 per dollar.

Throughout its history, the barrel of Brent cost more than 2,300 crowns practically only in 2012 and then briefly, for several days, in 2014.

“If the koruna price of a Brent barrel approaches the level of CZK 2,300 more permanently, it is quite probable that the price of Natural 95 petrol will rise to CZK 39 on average in the Czech Republic. In Prague, it would then exceed the level of 40 crowns per liter, “said Kovanda.

With the price of petrol rising to 39 crowns, the price of diesel would probably rise to the level of 38 crowns per liter, mainly due to last year’s reduction in the excise tax on it.

The two basic types of fuel will thus increase by an average of approximately three crowns per liter by the middle of this year. In the case of the war in Ukraine, Kovanda expects prices to rise to over 45 crowns per liter.

Fuels have become cheaper since the end of last November, when they reached their multi-year highs. In mid-January, however, the trend broke and fuels began to rise in price again.

A year ago, petrol in the Czech Republic was almost eight crowns cheaper. At the end of last January, drivers paid 7.80 crowns less for diesel than at present.

The cheapest petrol is now refueled by drivers in the Hradec Králové region, where a liter is CZK 35.83 on average. Diesel is the cheapest in the Ústí Region, they sell a liter there for an average of 34.72 crowns.

On the contrary, the most expensive fuels are offered by pumps in Prague. A liter of gasoline costs an average of 37.31 crowns in the capital. Diesel is refueled there for CZK 36.30 per liter.

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