President Karol Nawrocki signed legislation lowering fuel prices during a flight to Dallas on March 27th, with the measures set to take effect imminently.
Fuel Price Legislation Signed
President Karol Nawrocki signed two bills aimed at reducing fuel prices while en route to Dallas. Presidential spokesperson Rafał Leśkiewicz announced the signing on X, stating, “The President of the Republic of Poland, Karol Nawrocki, signed laws lowering fuel prices during his flight to Dallas. Sky is not the limit!”
Zbigniew Bogucki, Head of the Presidential Chancellery, confirmed the bills were immediately forwarded to the Prime Minister’s Office for publication and implementation as early as tomorrow. He criticized the government for a three-week delay in addressing rising fuel costs.
Details of the Fuel Price Laws
The amended act on oil reserves introduces a mechanism for calculating the maximum fuel price at stations. This price will be based on a formula including the average wholesale price, excise duty, fuel surcharge, a sales margin of 0.30 zł per liter, and VAT.
Key market players will be required to provide daily price updates to the Ministry of Energy. The maximum price will be announced by the Minister of Energy and will take effect the day after publication, with adjustments for weekends and holidays.
Retailers are permitted to sell fuel below the maximum price.
Tax Adjustments and Budget Impact
A separate amendment to the excise tax law allows for a temporary reduction in excise duties on diesel and gasoline until June 30th. Prime Minister Donald Tusk also announced a reduction in the VAT rate on fuels from 23% to 8%.
The Ministry of Finance estimates the excise duty reduction will cost the budget 700 million złoty per month, while the VAT reduction will cost 900 million złoty per month, totaling 1.6 billion złoty.
President Nawrocki’s US Visit
President Nawrocki arrived in Dallas, Texas on Friday evening. He is scheduled to speak at the Conservative Political Action Conference (CPAC) on Saturday and visit Lockheed Martin Aeronautics, the manufacturer of F-35 fighter jets.
His itinerary also includes a meeting with the Polish community and the presentation of state decorations. Discussions on the economy and energy are also planned during his visit, with a return to Poland scheduled for Monday.
