The Polish Ministry of Finance will not extend reduced excise tax rates on gasoline and diesel beyond mid-June, a move analysts warn will immediately raise pump prices and drive up inflation.<\/p>\n
The government has decided to keep only part of the “Lower Fuel Prices” program. While the reduced VAT rate on fuels and biocomponents will remain in effect until the end of June, the Ministry of Finance confirmed it does not plan to maintain the temporary excise duty cuts.<\/p>\n
As confirmed by the Polish Press Agency (PAP), the preferential tax rates will officially end in mid-June. This decision is expected to trigger an immediate increase in retail fuel prices as soon as the new rates take effect.<\/p>\n
Analysts at PKO Bank Polski estimate that rolling back the excise relief will increase fuel prices by approximately 28 to 29 groszy per liter. This would push average fuel prices in the CPI basket up by 4.2 percent, potentially raising the overall inflation rate by 0.2 percentage points.<\/p>\n
Experts at Erste Bank Polska offer similar projections, calculating a 4.5 percent fuel price hike and a 0.25 percentage point contribution to inflation. However, analysts note that a downturn in global oil prices could potentially mitigate some of these consumer costs.<\/p>\n
The “Lower Fuel Prices” package was launched in late March to mitigate market volatility caused by geopolitical tensions in the Middle East and military actions against Iran. The program’s core measures included lowering VAT from 23 percent to 8 percent and reducing excise taxes to the minimum levels permitted by the European Union.<\/p>\n
Economists emphasize that fuel prices have a cascading effect on the economy, as higher transport costs for businesses are typically passed on to consumers. While the government maintains a mechanism for maximum fuel prices to provide predictability, the end of the excise reduction signals a new period of rising costs for drivers.<\/p>\n
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The Polish Ministry of Finance will not extend reduced excise tax rates on gasoline and diesel beyond mid-June, a move analysts warn will immediately raise pump prices and drive up inflation. Excise Tax Relief Set to Expire The government has decided to keep only part of the “Lower Fuel Prices” program. While the reduced VAT […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wpai_generated_summary":"","footnotes":""},"categories":[40],"tags":[],"class_list":["post-3982","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/posts\/3982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/comments?post=3982"}],"version-history":[{"count":0,"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/posts\/3982\/revisions"}],"wp:attachment":[{"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/media?parent=3982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/categories?post=3982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizonews.com\/pl\/wp-json\/wp\/v2\/tags?post=3982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}