Slovakia will halve second-class train fares from October 1, as the government responds to rising petrol and diesel prices.
The government will review the discount monthly and guarantee it throughout October. That means cheaper fares will be in place ahead of municipal and regional elections on October 24.
The measure will cost the state EUR 5.3 million.
The opposition criticised the discount as populist.
“When the train doesn’t run, catches fire, is an hour late or there is no connecting service, people won’t take it to work even if it costs half as much,” said MP Jan Hargas of Progressive Slovakia (PS).
His party instead wants to tax Slovnaft refinery’s extraordinary profits and use the proceeds for fuel vouchers for vulnerable households and targeted support for the sectors hit hardest by high fuel prices.
The government is also capping retail margins on petrol and diesel at 10 cents per litre from October 1. Prime Minister Robert Fico acknowledged that this would not necessarily stop prices from rising.
“If prices rise, this is a brake to make sure retailers behave reasonably,” he said.
Peter Kadlec, owner of the Oil JPM filling station, said that many retailers already operated with margins of 10 cents or less, meaning the cap might have little effect on prices at the pump.
Opposition MP Veronika Remisova of the Slovensko-Za ludi group questioned why the government was targeting fuel retailers but not the country’s largest refinery.
“Fico will tell filling stations what margin they can have, but refuses to tax Slovnaft’s extraordinary profits,” she said.
The prime minister said that refineries already paid a sectoral levy in Slovakia, currently set at 2.5%. Slovnaft CEO Gabriel Szabo argued that the refinery was already heavily taxed, putting its combined tax burden at 37%.
Fico also ruled out cutting VAT or excise duty on fuel, saying Slovakia could not afford such compensation without taking money from areas including healthcare, education and pensions.
He also accused the EU of leaving member states “at the mercy of the oil crisis” and said he would push for an extraordinary EU summit.
The government also wants cheaper regional buses and urban public transport, but needs to reach an agreement with regional and city authorities first. (The Slovak Spectator)