Oil prices fall; Slovak fuel prices don’t

Despite oil prices hitting new lows in recent weeks, the drop in fuel prices lags far behind, reports the Hospodárske Noviny daily in a Tuesday story. The price of Brent crude oil has plunged by 44 percent since July, or from $110 a barrel to some $62.50 a barrel. Fuel prices in Slovakia have dropped by only some 11 percent over the same period, while the Czech Republic, for one, has seen a fall of 16 percent. Experts blame poor competition and the high excise tax on petrol for a slower pace in the fall of fuel prices in Slovakia, with Slovakia's excise tax on petrol being higher than in surrounding countries. While each litre of petrol sold in the Czech Republic yields 68 euro cents to state coffers there, the figure is 10 euro cents higher in Slovakia. "It's also because competition is fiercer in the Czech Republic, and this spawns a faster rate of fall", said analyst Jozef Badida. "We've been cutting prices for several weeks now, most recently this past weekend", said spokesman for Slovnaft oil refinery Anton Molnar. At any rate, the falls in fuel prices are likely to be here to stay for the moment, as analysts expect them to continue to shrink by another 10 euro cents before the end of this year.