Poland will implement new maximum fuel prices on Wednesday, with 95-octane gasoline capped at 6.21 złoty per liter, as part of the “CPN” package.
New Fuel Price Limits: What Drivers Will Pay
Starting Wednesday, the maximum retail price for 95-octane gasoline will be 6.21 złoty per liter, 98-octane gasoline at 6.81 złoty, and diesel fuel at 7.66 złoty, according to a Tuesday announcement by the Minister of Energy.
These maximum prices represent an increase compared to Tuesday’s limits, where 95-octane gasoline was capped at 6.16 złoty, 98-octane at 6.76 złoty, and diesel at 7.60 złoty per liter.
Price Calculation Mechanism and Components
The maximum fuel price is determined by a formula incorporating the average wholesale price of fuels on the domestic market, plus excise duty, fuel surcharge, a retail margin of 0.30 złoty per liter, and VAT.
Legislative Changes and Tax Adjustments
Amendments to the act on oil reserves, which came into effect on Sunday, introduced the mechanism for calculating maximum fuel prices. During the period of reduced VAT rates (since March 31st), fuel sellers must adhere to the maximum price.
A regulation from the Minister of Finance and Economy, effective Monday, lowers excise duty on fuels until April 15th: gasoline to 1239 złoty per 1000 liters, diesel to 880 złoty per 1000 liters, and biocomponents to 880 złoty per 1000 liters.
VAT and Excise Duty Reductions – Impact on Prices
A regulation lowering the VAT rate to 8% for fuels, valid from March 31st to April 30th, was published on Saturday evening and takes effect on Tuesday.
Government Action and the “CPN” Package
The government adopted and forwarded to the Sejm (Parliament) legislative projects aimed at limiting fuel price increases last week, which were subsequently approved by the Senate and signed into law by President Karol Nawrocki.
Prime Minister Donald Tusk stated that the “CPN” (“Prices Lower”) package is intended to reduce prices at the pump and that a windfall tax may be applied to oil companies if excessive profits are identified.
Financial Implications of the Measures
The Ministry of Finance estimates that the excise duty reduction will cost the budget 700 million złoty per month, while the VAT reduction will cost 900 million złoty per month. The CPN package aims to limit price pressures and have an anti-inflationary effect while ensuring fuel supply security.