A new Polish package of measures, dubbed “CPN” (Prices Lower), came into effect Monday, lowering excise duties and introducing maximum fuel prices.
Lower Excise Rates Now in Effect
Regulations lowering excise duty on gasoline and diesel fuel took effect Monday. An announcement regarding maximum fuel prices at stations is expected to be published Monday, with the prices becoming effective Tuesday.
The reduced excise rates, effective until April 15th, are 1239 zł per 1000 liters for gasoline, 880 zł per 1000 liters for diesel, and 880 zł per 1000 liters for biocomponents used as standalone fuels.
Legal Basis for Price Controls
The regulations were issued based on an amendment to the excise tax law, which came into effect Sunday. The amendment allows for temporary reductions in fuel excise rates through regulations, valid until June 30th.
Maximum Price Mechanism
An amendment to the act on oil reserves, also effective Sunday, introduced a mechanism for calculating the maximum fuel price at stations. During the period of reduced VAT rates (starting March 31st), fuel sellers are obligated to adhere to the maximum price.
Price Announcement and Technical Adjustments
Energy Minister Miłosz Motyka stated Saturday that the announcement of maximum fuel prices would be published as early as Monday, with price changes at stations occurring no sooner than Tuesday. Technical adjustments, such as adapting fiscal cash registers, are contributing to the delay.
Price Announcement Rules and Penalties
The maximum price announced by the energy minister will be valid from the day following its publication in the Polish Monitor. If announced before non-working days or holidays, the rate will be valid until the next working day.
Selling fuel above the maximum price will be punishable by a fine of up to 1 million złoty, with the National Revenue Administration conducting inspections.
Maximum Price Calculation
The maximum price will be determined by a formula including the average wholesale price of fuels on the domestic market, plus excise duty, fuel surcharge, a sales margin of 0.30 złoty per liter, and VAT.
VAT Reduction Also Implemented
A regulation lowering the VAT rate on fuels to 8% was published Saturday evening and will be effective from March 31st to April 30th. The regulation will come into force on Tuesday.
CPN Package and Excessive Profits
The two bills enabling the limitation of fuel price increases were adopted by the government at an extraordinary session and sent to the Sejm last Thursday. Work on both acts began in the Sejm on the same day. The Sejm passed both laws, subsequently approved by the Senate, and signed by President Karol Nawrocki on the same day. They were published in the Journal of Laws on Saturday, along with the two regulations from the Minister of Finance and Economy regarding excise duty and VAT reductions.
Government Aims for Lower Prices and Windfall Tax
Prime Minister Donald Tusk indicated that the CPN package, or “Prices Lower,” is intended to lead to a decrease in prices at stations. The Prime Minister also announced that a windfall tax may be applied if excessive profits are identified within fuel companies.
Financial Impact of the CPN Package
The Ministry of Finance estimates that the reduction in fuel excise duty will cost the budget 700 million złoty per month, while the VAT reduction will cost 900 million złoty per month. The CPN package is expected to limit price pressures, have an anti-inflationary effect, and ensure the security of fuel supplies. (PAP)