Poland to cut fuel taxes, cap prices

The Polish government has announced a package of measures to lower fuel prices, aimed at mitigating increases linked to the Israeli–US war with Iran, money.pl reports.

The measures include a reduction in VAT from 23 to 8 per cent, a cut in excise duty of about €0.07 on petrol and diesel, the introduction of a maximum retail price and plans to impose a tax on excess profits of oil companies.

Prime Minister Donald Tusk said the package was designed to ensure the lowest possible fuel prices while preventing unreasonable increases in retailer profits. The maximum price will be set daily by the energy minister, based on wholesale prices and operating costs. The government is expected to submit the bill to parliament and the president on an expedited basis.

According to the government, the measures could reduce fuel prices by around PLN 1.20 per litre (€0.28). Tusk said the aim is to avoid profiting from the crisis at the expense of drivers and taxpayers.

He also pointed out that the rise in fuel prices is a direct consequence of military operations in the Middle East: ‘We did not start this war and we will have no influence on its end. We have decided to act in the full knowledge that the fuel market situation will depend on what happens in the Middle East.’

(max)