Poland’s Finance Minister announced the likely extension of the “Lower Fuel Prices” program through the May holiday, amid rising global oil prices and potential windfall taxes.
Rising Fuel Prices Prompt Government Intervention
The war in the Middle East, following the February 28th attack by the US and Israel on Iran, has driven up global oil prices, impacting retail fuel costs in Poland. In late March, the government responded with a temporary package of regulations known as “Lower Fuel Prices” (CPN).
The CPN program includes reductions in VAT and excise duties on fuels, as well as maximum fuel prices.
CPN Extension Confirmed for May Holiday
During the European Economic Congress in Katowice, Finance Minister Andrzej Domański confirmed the program would likely continue through the May holiday period. He stated the ministry is “technically prepared” for the extension.
Domański added that the situation would be continuously analyzed should the conflict in the Middle East escalate.
Windfall Tax on Oil Companies Under Consideration
The Minister also addressed proposals for a tax on the excess profits of fuel companies due to rising oil costs. While observing a decline in market margins, he affirmed the government would proceed with a project proposal.
The project’s assumptions are expected to be ready by the end of April.
Current CPN Regulations and Price Caps
The current government program, effective since March 31st, lowers VAT on fuel from 23% to 8% and reduces excise duty to the lowest level permitted by the EU (29 grosz per liter of gasoline and 28 grosz per liter of diesel).
The Ministry of Energy publishes daily announcements regarding maximum fuel prices, which are based on the average wholesale price, excise duty, fuel surcharge, a sales margin of 0.30 zł per liter, and VAT.
Maximum Fuel Prices as of April 20th
According to the Energy Minister’s announcement, the maximum price for 95-octane gasoline is 6.03 zł per liter, 98-octane gasoline is 6.57 zł per liter, and diesel is 7.07 zł per liter, effective from Saturday to Monday inclusive.
These prices represent a decrease compared to Friday’s maximum prices.