New maximum fuel prices will take effect in Poland on Wednesday, with gasoline 95 capped at 6.21 złoty per liter, according to the Energy Minister’s announcement.
New Fuel Price Limits Announced
New fuel price limits are set to take effect in Poland this Wednesday. Gasoline 95 will be capped at 6.21 złoty per liter, gasoline 98 at 6.81 złoty, and diesel at 7.66 złoty, according to a Tuesday announcement from the Minister of Energy.
The maximum prices at gas stations will be higher on Wednesday than they were on Tuesday.
Maximum Fuel Prices Detailed
On Tuesday, the Minister of Energy stipulated in an announcement published in the Polish Monitor that the maximum price for 95-octane unleaded gasoline, including VAT, would be 6.21 złoty. The price for 98-octane unleaded gasoline, including VAT, will not exceed 6.81 złoty per liter, and the maximum price for diesel fuel will be 7.66 złoty per liter, including VAT.
Price Regulation and Penalties
The maximum price, announced by the Minister of Energy, comes into effect the day following its publication in the Polish Monitor. If announced before non-working days and holidays, the rate will be valid until the next working day. The Ministry of Energy will publish an announcement regarding maximum fuel prices daily.
Selling above the maximum price is punishable by a fine of up to 1 million złoty, and controls will be carried out by the National Tax Administration.
Fuel Price Calculation Mechanism
The maximum price is determined according to a specific formula, including the average wholesale price of fuels on the domestic market, plus excise duty, fuel fee, a sales margin of 0.30 złoty per liter, and VAT.
Legal Changes and VAT/Excise Adjustments
An amendment to the act on oil stockpiles came into force on Sunday, introducing a mechanism for calculating the maximum fuel price at stations. During the period of reduced VAT rates (since March 31st), fuel sellers must apply sales prices no higher than the maximum price.
As of Monday, a regulation from the Minister of Finance and Economy regarding the reduction of excise duty on fuels is in effect. Until April 15th, the reduced excise duty is 1239 złoty per 1000 liters for gasoline, 880 złoty per 1000 liters for diesel, and 880 złoty per 1000 liters for biocomponents.
VAT and Excise Duty Reductions
A regulation reducing the VAT rate was published on Saturday evening and will be effective from March 31st to April 30th, lowering the VAT to 8 percent.
Legislative Process and Presidential Approval
Draft laws limiting fuel price increases were adopted by the government at an extraordinary session and sent to the Sejm last Thursday. The Sejm approved the changes on Friday, followed by the Senate. President Karol Nawrocki signed the laws the same day, and they were published in the Journal of Laws on Saturday, along with two regulations from the Minister of Finance and Economy regarding excise duty and VAT reductions.
Government Initiatives and Potential Taxes
Prime Minister Donald Tusk stated last week that the CPN package, or “Lower Fuel Prices,” should lead to a decrease in prices at stations. The Prime Minister also announced that if excessive profits are identified within fuel companies, a windfall tax may be applied to counteract disproportionately high margins related to raw material price increases.
Financial Impact of Price Reductions
The Ministry of Finance estimates that the excise duty reduction on fuels will cost the budget 700 million złoty per month, while the VAT reduction will cost 900 million złoty per month. The CPN package is intended to limit price pressure, act as an anti-inflationary measure, and ensure the security of fuel supplies.
(PAP)
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