Many had hoped that, due to rising fuel prices, the government would follow the example of neighboring countries and lower excise taxes or value-added tax. Prime Minister Robert Fico, however, stated that a direct tax cut would cost the budget tens of millions of euros without having a noticeable effect on drivers’ wallets. Instead, the government decided to cap markups at gas stations and support public transportation.
Discounts on Trains and Buses: How It Will Work
The main tool for supporting the public will be compensation for travel expenses. The government has decided to partially shift drivers to public transportation by significantly lowering ticket prices starting October 1:
Rail: The cost of single-ride and route tickets for 2nd-class train travel will be reduced by 50% on ZSSK trains (including the Bratislava–Košice express) and Leo Express (on the Bratislava–Komárno line). The discount will apply to all single-ride, weekly, and monthly tickets purchased at ticket offices, the e-shop, or the app, while free travel for students and seniors remains in effect without change. However, the half-price discount will not apply to international trips, reserved seats (miestenky), annual network passes, IDS tickets, or additional services (luggage, bicycles).
Suburban buses: The government will compensate regions (VUCs) for one-third of their costs (about 30%) to reduce ticket prices for passengers by 30% (over 800,000 euros per month for each region).
Urban public transportation (MHD): The allocation of subsidies to regional cities is being considered, which would allow for a 50% reduction in the price of city transit passes.
According to Robert Fico, these measures will be implemented for 30 days and will be reviewed monthly, with the possibility of extension into November and beyond.
Cap on gas station margins—maximum 10 cents per liter
To curb further increases in fuel prices, the government has decided to regulate gas station chains. The authorities are introducing a maximum margin for retailers of 10 cents per liter.
“This does not mean that we will completely stop price increases, but if market prices continue to rise, this will serve as a safeguard to ensure that sellers act fairly,” the prime minister stated.
Gabriel Sabo, CEO of the Slovnaft oil refinery, confirmed that this measure had been discussed with the government. He emphasized that the company will continue to adhere to a restrained pricing policy and will not react to short-term daily market fluctuations. At this time, the government has no plans to impose additional special taxes on Slovnaft.
Why did Slovakia reject tax cuts?
The opposition (in particular, the SaS party) proposed temporarily reducing spotrebné dane (excise tax) on fuel. However, the government firmly rejected this idea.
The main reason is the threat of a budget deficit. The budget counts on receiving nearly 1.52 billion euros specifically from excise taxes on mineral oils and fuel (this accounts for over 53% of the country’s total excise tax revenue). Losing these funds would cost the state treasury tens of millions of euros.
Economic analysts share the skepticism regarding tax cuts. Ondrej Gregush of XTB notes: “Demand for fuel is price-insensitive. People and companies won’t start driving significantly more just because the price per liter drops by a few cents. Increased consumption wouldn’t be enough to offset the budget losses.”
How is the rest of Europe reacting, and what do experts say?
Slovakia has taken an approach that is unique in the region, as neighboring countries are acting differently:
The Czech Republic is reducing the excise tax on diesel to the minimum allowed under current EU rules for the entire month of October.
Germany is reducing the energy tax (prices will drop by approximately 17 cents per liter) and plans to introduce a general price cap at a later date.
Poland is considering introducing a tax on oil companies’ windfall profits to fund compensation payments to citizens.
Economic analysts warn that Slovakia’s package of measures may prove insufficiently effective. ČSOB analyst Marek Gabrish emphasizes that fare discounts will only work if there are no bureaucratic obstacles for passengers, and the situation on the oil market will remain tense as long as geopolitical conflicts continue.
At the same time, European Commission statistics show that, excluding taxes, fuel prices in Slovakia remain among the lowest in the European Union, and overall retail prices are lower than in Poland, the Czech Republic, or Austria (fuel is cheaper only in Hungary).
