Fuel Prices Set to Drop Sharply as Government Prepares New Measures

The Polish government is reportedly preparing to reintroduce the “Lower Fuel Prices” program starting Monday, August 17, aiming to deliver fresh relief to drivers.

Government Prepares Return of the CPN Program

Fuel prices are once again expected to drop sharply as the government prepares to bring back the “Lower Fuel Prices” (CPN) program. According to unofficial findings by Polsat News, new solutions are set to take effect starting Monday, August 17, with details to be announced soon. For drivers, this would mean another clear reduction following recent price drops observed at fuel stations.

The government intends to restart mechanisms that lower the prices of gasoline and diesel. This would mark a return to the CPN program, first implemented in late March 2026 in response to a sharp surge in oil and fuel prices caused by the Middle East conflict.

Detailed Rates and Ministerial Statements

Detailed rates have not yet been officially announced, but it is known that the government has spent days preparing to reuse tax instruments that lower fuel prices. Minister of Energy Miłosz Motyka stated on August 12 in Radio ZET that a decision regarding the potential resumption of CPN would be made this week. A previously considered variant primarily involved a temporary reduction in VAT while leaving excise duty unchanged.

Radio ZET reported at the beginning of August that such a solution could reduce fuel prices by about 1 PLN per liter. However, this does not mean that exact reduction will ultimately appear at stations. Until the official presentation of the new CPN conditions, the exact amount of maximum prices remains unknown.

Gasoline and Diesel Prices Already Falling

The new government intervention would overlap with declines that have already appeared on the retail market. According to e-petrol data cited on August 12 by AutoCentrum, the nationwide average price of Pb95 gasoline was 7.29 PLN per liter, down 26 groszy from the previous week. Pb98 gasoline cost an average of 8.09 PLN per liter, also 26 groszy lower than the prior week.

Diesel prices were also falling, with the average diesel price at 8.09 PLN per liter, reflecting a 13-groszy drop from the previous week. Meanwhile, LPG cost an average of 2.29 PLN per liter following a weekly decrease of 2 groszy.

Despite these drops, price levels remain high, compounded by the volatility of the wholesale market. On August 12, wholesale prices for Pb95 gasoline stood at approximately 5,484 PLN per cubic meter, and diesel at around 6,379.80 PLN, according to e-petrol. The market remains heavily dependent on oil quotations, the dollar exchange rate, and developments in the Middle East.

Origins of the CPN Program

The first “Lower Fuel Prices” package was launched in late March when fuel prices in Poland reached unprecedented levels. According to Reflex data, prior to its introduction, Pb95 gasoline cost an average of 7.16 PLN per liter, Pb98 gasoline 7.85 PLN, and diesel reached up to 8.75 PLN per liter.

The government enacted far-reaching tax changes at the time, lowering VAT on gasoline, diesel, and standalone biocomponents from 23 to 8 percent. Simultaneously, excise duty rates were reduced to the minimum level permitted by European Union regulations, cutting the burden by 29 groszy per liter of gasoline and 28 groszy per liter of diesel.

In March, the Chancellery of the Prime Minister estimated that combining reduced VAT and excise duty could lower fuel prices by about 1.20 PLN per liter. For a 50-liter tank fill-up, this meant savings of around 60 PLN compared to prices before the program launched.

Tax Cuts and Maximum Station Prices

The CPN program was not limited solely to taxes; the VAT reduction was tied to the ability to set maximum retail fuel prices. The Minister of Energy published values that stations were prohibited from exceeding.

For instance, on June 8, the maximum VAT-inclusive price for Pb95 was set at 5.93 PLN per liter, Pb98 at 6.57 PLN, and diesel at 6.45 PLN per liter. By late June, maximum levels remained clearly lower than pre-CPN prices, with a June 24 ordinance establishing maximum prices of 5.96 PLN per liter for Pb95, 6.67 PLN for Pb98, and 6.11 PLN for diesel.

The system, however, was designed as an extraordinary and temporary solution. Preferential excise rates ultimately applied until June 15, while the government extended the reduced VAT until June 30, after which that mechanism also expired.

Budgetary Costs and Program Scale

The scale of the new program may be smaller than in the spring primarily due to its cost to the state budget. When introducing the initial CPN, the government estimated that the VAT reduction alone would reduce monthly budget revenue by about 900 million PLN, while the excise cut would decrease it by about 700 million PLN.

Consequently, applying both mechanisms cost approximately 1.6 billion PLN per month. This is one reason why the August variant was previously considered in a limited form, focused primarily on a temporary VAT reduction.

Radio ZET reported on August 4 that the ministries of energy and finance were working on a solution covering at least the final two weeks of August—a period marked by heavy holiday return traffic. Miłosz Motyka subsequently confirmed on August 12 that a resolution regarding the return of CPN was near.

Now, according to Polsat News, the government has decided on further price cuts scheduled to take effect starting August 17. The primary unknown remains the exact scale of the cuts and whether the maximum retail price mechanism will be redeployed alongside the VAT reduction.