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Slovakia faces EU legal challenge over foreign vehicle diesel pricing

Economy & businessEconomy
Slovakia faces EU legal challenge over foreign vehicle diesel pricing
Key Points
  • Slovakia approved higher diesel prices for foreign vehicles with a 30-day refueling restriction
  • EU Commission calls the measure discriminatory and plans legal action
  • Slovak government cites fuel shortages and global price surges due to Iran war

Slovakia's government has approved a resolution allowing service stations to charge higher diesel prices for vehicles with foreign registration plates, according to multiple reports. The measure includes a 30-day restriction on diesel refueling in Slovakia. A European Commission spokesperson stated that the measure is highly discriminatory and against EU law, adding that the Commission will take appropriate legal action to ensure compliance with EU law.

Under the resolution, fuel pumps can limit diesel sales to a full tank and up to 10 additional liters, multiple reports indicate. Prices of diesel for foreign-registered cars can be set based on the average of prices in neighboring Czech Republic, Austria, and Poland. The measures will be valid for 30 days and do not concern gasoline. The resolution does not specify an upper price limit for diesel for foreign-registered cars, leaving the exact percentage or amount of the price increase unclear.

Prime Minister Robert Fico stated that drivers were filling both their tanks and additional containers, leading to fuel shortages at some stations. He added that the government wanted prices comparable to most neighboring countries like Poland, and cheaper than in Austria. Slovakia has sought to secure supplies as global energy prices have surged due to the Iran war. The country's Russian crude deliveries through the Druzhba pipeline have been interrupted due to damage to the line in Ukraine. Refiner Slovnaft reported a significant increase in purchases in northern districts bordering Poland, where diesel prices were notably lower on the Slovak side.

Regional fuel price measures have also been implemented in neighboring countries. Hungary capped fuel prices this month, according to multiple reports. Poland's main refiner Orlen has reduced its margins to mitigate the impact on consumers, multiple reports indicate.

In the UK, diesel prices have soared by an average of just under 19p per litre since the start of the Middle East conflict, according to multiple reports. The 14 per cent increase means diesel is at its most expensive level since November 2023. Petrol prices are up 7 per cent over the same period, rising from 132.8p per litre to 141.7p per litre. The last time petrol was more expensive was August 2024. Chancellor Rachel Reeves told petrol retailers last week they had a 'shared obligation' to keep prices down for motorists.

British motorists were told they should not drive slower nor buy fuel differently because of the Iran oil crisis, multiple reports indicate. Michael Shanks insisted British drivers did not need to change their habits, despite suggestions from the International Energy Agency (IEA) aimed at conserving fuel. The IEA has advised motorists across the world to reduce their speed on highways, share rides, and work from home when possible to reduce how much petrol or diesel they use, according to multiple reports.

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