The recently approved consolidation package, which aims to reduce the state budget deficit, will affect motorists’ spending as early as the end of the year. While the new taxes will minimally affect motorists, the package includes increased highway tolls and higher tolls for trucks.
Cheaper car seats
The VAT adjustment will have only one impact on drivers: the taxation of child car seats will change. Until now they fell within the 15% VAT rate. Starting from the new year, only the twelve percent rate will apply to them. However, the difference is not large, so it is expected that customers will not even notice the change. Furthermore, there is a risk that traders will offset the tax cut with a larger margin.
Highway stamp
From March, after twelve years, the prices of motorway vignettes will change. The amount of the basic annual fee will be increased by eight hundred crowns. On the contrary, drivers save several dozen crowns with lower fares. The European directive sets limits on the overall amount of the annual fee. The government also introduces a daily tax stamp, the price of which is set at 200 crowns for ordinary vehicles.
The discount for vehicles powered by methane or biomethane remains unchanged. The rate is half the base price. But drivers of hybrid vehicles that produce a combined amount of CO2 emissions of up to 50 g/km will also have to pay. They pay only a quarter of the price of a regular stamp. Electric cars will continue to be exempt from the tax.
Fortunately, this year too there is the possibility of purchasing an annual vignette at the old price: if you buy it on the last day of February with validity postponed by 30 days, you will travel until March 2025 for 1,500 crowns instead of 2,300 CZK.
Toll
Just as the amounts of tolls for passenger vehicles change, the amount of tolls for trucks will also change. Its tariff will also take into account the so-called fourth component, i.e. the emission class of the vehicle. The total toll price should therefore vary from 10 to 15%. According to the rules of the Eurovignette Directive, more environmentally friendly vehicles will be charged a lower amount. The fourth component does not concern completely emission-free electric or hydrogen-powered vehicles.
Tolls abroad: no significant changes
Motorway tolls are also changing in neighboring countries. The changes in Austria have been known since December. The annual one costs 96.40 euros, which is the same as last year, but the ten-year fee has increased to 11.50 euros. The bimonthly price instead fell, albeit by only ten cents, to 28.90 euros. The country also recently introduced an 8.60 euro daily stamp. In Slovakia the tax increase is still under consideration. The previous government had proposed increasing the price of the annual road tax by ten euros, but in the current situation it is not clear whether this will happen. Currently it is possible to purchase an annual stamp for 60 euros, a ten-day stamp for twelve. You will pay five euros more every month. The highways in Germany have undergone major changes. Passenger cars can still use them for free, but now all cars weighing more than 3.5 tonnes must pay a toll. As with us, a surcharge for CO2 emissions is added to the toll. Since last summer in Poland only a few routes operated by private companies have been taxed for cars. They collect the fare in the form of a toll, so it depends on the number of kilometers traveled and the specific road, as each company sets prices separately.
Fuels: a safe bet
Last year we were reassured by the fact that there was no risk of somersaults. Some have arrived and we probably won’t avoid them this year either. “Daily fluctuations in diesel and gasoline prices are often more than 50 cents,” Ivan Indráček, president of the Union of Independent Oil Workers, illustrates the complexity of the situation. According to him, already two years ago a change of ten pence was the signal of an unexpected development.
However, the Czech fuel market is relatively calm. “If this year’s development is similar to last year’s, consumers should be satisfied,” thinks Indráček. Lukáš Kovanda, chief economist at Trinity Bank, also expects a favorable development in fuel prices. According to him, this year, on average, they should be slightly lower than at the end of last year. “However, the forecast is burdened by a significant amount of uncertainty, especially regarding unpredictable geopolitical developments,” warns the economist. The development of conflicts in Ukraine and the Middle East will play an important role. “They can easily increase and cause a significant increase in fuel prices in the Czech Republic,” describes Kovanda. Strained relations between the United States and China are also critical. “But if none of the risks materialize, Brent will average around $75 a barrel next year.” thinks Kovanda. The recent decision of the European Council should also contribute to price stability. In mid-December it extended the exemption for petrol and diesel deliveries from Slovakia. The refineries process mainly Russian oil. “Keeping the exemption is somewhat of a safe bet,” concludes Indráček.
Charging of electric cars
Electric car owners cannot expect a reduction in operating costs either. Even as electricity is getting cheaper, the price of the regulated component is rising. “I don’t see any factors that could bring down prices, quite the opposite” explains Damir Duraković from Axigon. Furthermore, according to him, the competitive environment does not have the same effect as with gas stations. Added to this is the negative influence of roaming platforms. “Although they allow charging on different networks, they charge ridiculous fees, which are then reflected in the final charging prices,” concludes Duraković.
Oils and fats: a reduction is not foreseeable
According to Chytka, thanks to the sufficient saturation of the markets with base oils, their prices will be able to remain low until the end of the year. “Efforts to raise prices have not yet borne much fruit,” describes Petr Chytka of Sunoco. However, lubricant prices are rather affected by the increase in additive costs. “Under the influence of ecologists, the European Union and the United States are pushing for restrictions or bans on the use of some low-cost raw materials. The impact will necessarily be an increase in prices,” Chytka explains. Growth is also driven by events happening in the country: high energy prices, inflation and increased taxation. However, more expensive production is counterbalanced by strong competition and strong price pressure. Despite the negative effects, it can be expected that oil prices will not change significantly at the end of the year. However, according to Chytka, they will start to grow after the first quarter. “Unless inflationary pressure and cost pressure on manufacturers and importers decreases, we cannot expect price reductions,” he concludes.
Service prices: inevitable growth
Car maintenance will be a major blow for most drivers this year. Utilities are facing rising energy costs and prices. “We can expect a rate increase of up to around 10%” predicts David Valenta of Porsche CR and adds that the hourly rate is not profitable anyway. Lack of employees is also a problem, so services are forced to increase wages. “We expect an increase of more than fifteen percent in hourly rates for service work,” underlines Tomáš Kleissner from the car manufacturer Kia.
The prices of the works will also be affected by the new requirements in terms of workshop equipment and technician knowledge. The reason is simple: the growing complexity of cars and electromobility. “This puts pressure on the retraining of car mechanics and the equipping of car workshops,” explains Marek Zukal, CEO of Quick stop car.
However, Hyundai customers don’t have to worry about a sharp price increase. “Some retailers may increase their hourly rates slightly. Other dealers, however, do not intend to increase prices at all due to the economic situation of customers,” says David Pavlíček, spokesman for the car manufacturer.
Spare parts: stable supply
Even spare parts cannot avoid the constant increase in prices. However, Kia, for example, expects only a slight increase in component prices. Customers of the Volskwagen company will also see a similar development. “The increase in inputs is reflected in the production of parts, we expect growth in percentage units,” describes David Valenta from Porsche Czech Republic. However, the availability problems would disappear. “We are moderately optimistic and believe that the trend towards stabilization of supplies will continue,” adds Tomáš Kleissner from the car manufacturer Kia. However, future complications cannot be ruled out.
“We live in a global world strongly influenced by current events. The availability of parts with chips has been resolved, but other parts from other suppliers have become problematic again.” adds Valenta. He alludes, for example, to last year’s floods in Slovenia.
Tires: only slightly
Only small changes can be expected for footwear this year. “In order, it will be lower percentage units and the price increase will mainly affect the smaller sizes,” explains Vojtěch Schwangmaier, director of the Pneumaty.cz e-shop. However, the price of imported tires could be significantly affected by transportation costs. “If it doesn’t increase significantly, the price level shouldn’t change,” adds Petr Vohralík for producer Tomket.
STK: Expensive equipment
The price trend for technical inspections should be rather calm, but a slight increase cannot be ruled out. “According to our estimate, it will not even reach 6%” reassures Luděk Šíp of the STK Association. The pace of price increases is therefore expected to be more moderate than last year. As in other cases, look for higher station costs behind the price increases. “Especially higher energy prices, higher employee wages and rising rental prices, as most MOTs are in rented premises,” adds Šíp. The new obligation to equip factories with a sound level meter will also be included in the prices.
Mandatory liability: the insurance revolution
Drivers will also face numerous changes to their liability insurance this year. At the beginning of December, in the third reading, the House of Representatives approved the amendment to the law on motor vehicle liability insurance, which will now be discussed in the Senate. It will likely come into effect in early March. Thanks to the change, you will be able to leave your green card at home, in addition to your driving license. But there are other changes imminent.
A significant increase in insurance prices can also be expected this year. In recent years they have grown only slightly. The rate was lower than the rate of inflation and the increase in prices of spare parts and labor. Additionally, insurance policies have not responded as much to the growing sophistication of automobiles, which complicates and makes repairs more expensive. “Everything we pay for with insurance is more expensive: materials like bumpers, auto glass and other parts, higher labor costs at auto repair shops, and increased energy,” calculates Aleš Zethner from the insurance company Kooperativa. For this reason, the costs of resolving even minor incidents have increased by thousands of crowns. The increase in costs is reflected in the growth of so-called claims inflation, to which insurance companies must respond.
“Last year it exceeded ten percent. That’s why the price will increase, but we definitely don’t expect a sudden increase,” describes Renata Čapková from Česká podnikatské pojišťovna. The reason for the growth is also a higher frequency of claims, i.e. the number of accidents. “If accidents increase, insurance premiums should increase to cover a greater volume of claims,” explains Zethner. But, despite the higher costs, the more sophisticated and therefore more expensive cars paradoxically help insurance companies. “Cars are becoming safer. The number of deaths and serious injuries on the road is decreasing slightly,” adds Zethner.
However, exemplary drivers who do not crash do not have to worry about a large increase. “They can expect to be affected by price changes as little as possible,” concludes Jan Marek, spokesperson for Generali Česká pojišťovna.
A broader spectrum
Mandatory liability will no longer just apply to cars. According to the amendment, all vehicles whose maximum design speed is more than 25 km/h or more than 14 km/h with a weight of at least 25 kg will have to be insured. Owners of electric scooters, Segways, golf carts, but also garden tractors will have to take out insurance. They will be exempt if they do not leave private property. If they enter public roads, they must have insurance. Electric bikes are completely exempt.
New limits
The change to the law also changes the legal minimum amount of coverage. From the current thirty-five million for both personal injury and property damage, both limits will be raised to fifty million crowns.
Insurance companies will automatically increase rates for all drivers who have negotiated contracts with existing base limits. “The automatic increase will not have an immediate impact on the price of liability insurance,” explains Eva Svobodová, spokeswoman for Uniq.
According to her, the amount of the insurance premium can change only on the anniversary of the contract.
The insurance is the responsibility of the operator
The change in the person responsible for insurance is significant. This obligation will now fall on the operator and no longer on the owner of the vehicle. The change will mainly affect customers of leasing companies or long-term leased vehicles. According to the reasoned report the change is based on negative experiences with the current legislation. The amendment transfers responsibility above all for easier management of crimes or for cancellation of insurance, but also for a fairer use of the bonus and malus system.
Online tests
Also new will be the cancellation of green cards for proof of civil liability insurance. They will be replaced by online registrations, so checks will be possible even without stopping the vehicle. But the change only applies here, so don’t forget your green card when traveling abroad.
Survey: How will insurance prices develop?
Renata Čapková, ČPP: They must respond to harmful inflation. It can be expected that the price will increase, but we definitely do not expect a sudden increase, because in the long term prices are influenced by high market competition.
Jan Marek, Generali Česká pojišťovna: The current price increase takes little account of the increase in costs. More is paid for the damages than is collected in the insurance premium. Such a situation is not sustainable and a gradual increase in prices is therefore inevitable. We will also have to take inflation into account.
Petr Milata, ČSOB pojišťovna: The trend in insurance prices will be influenced by inflation. We assume that the costs of insurance benefits in the event of damage suffered will increase. This must necessarily be reflected in the final price of the insurance.
Marie Petrovova, Allianz: The prices of compulsory and accident insurance will continue to increase gradually. Among the main factors will be the development of growth in spare parts prices and labor prices in garages.
Aleš Zethner, Cooperative: If the insurance market is to remain stable, premiums must increase. In principle, insurance prices should follow claims inflation, which has not happened in recent years.
