Poland reintroduces VAT cut and daily price caps to lower fuel costs for drivers
Prices should fall by around 1 zloty per litre while the measures are in place between 17 August and 31 August, says Prime Minister Tusk.
Poland's government has announced the reintroduction of a value-added tax reduction and daily fuel price caps from August 17 until at least August 31 to alleviate consumer costs amid the energy crisis triggered by conflict in the Middle East. Known as CPN, the package aims to lower fuel prices by approximately 1 zloty (€0.23) per liter, bringing them closer to the lowest levels in Europe.
Currently, 95-octane petrol averages 7.29 zloty and diesel 8.09 zloty per liter, according to the Polish price monitoring service E-Petrol. Prime Minister Donald Tusk defends the measures, stating they are crucial for millions of Polish drivers, especially during holiday periods. However, the government acknowledges the "serious costs" to the state budget, with similar measures in March-June costing the budget 4.7 billion zloty.
Opposition-aligned President Karol Nawrocki's refusal to sign a windfall tax on fuel companies' excess profits, estimated to generate 4 billion zloty, was criticized by Tusk. Critics argue that fuel companies might pass tax increases to consumers, further raising prices.
Written by urgent.news from Notes from Poland's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
