POLAND TO REINTRODUCE FUEL PRICE RELIEF MEASURES AT 500 MILLION ZLOTYS COST

Prime Minister Donald Tusk cuts fuel VAT to 8% for late August, aiming to lower pump prices amid persistent global energy pressures

WARSAW: The Polish government will reintroduce targeted relief measures to lower fuel prices across the country during the final two weeks of August, carrying an estimated state cost of around 500 million zlotys ($134.06 million), Energy Minister Miłosz Motyka confirmed on Friday.

The decision follows an announcement by Prime Minister Donald Tusk outlining plans to temporarily reduce the Value Added Tax (VAT) on automotive fuel from 23% to 8% between August 17 and August 31. The initiative is part of Warsaw's renewed "Fuel Prices Down" (CPN) framework designed to shield consumers from elevated global oil prices and curb domestic inflationary pressure.

Under the reintroduced package, the government expects retail pump prices to drop by nearly 0.90 to 1.00 zloty per liter. To ensure fuel distributors pass the tax reductions directly to motorists rather than absorbing savings into profit margins, the Energy Ministry will resume setting daily maximum price caps for retail gas stations. Retailers found violating the price ceilings face administrative fines of up to 1 million zlotys.

The temporary tax cut comes as public finances face competing budget demands, including record defense spending. However, Polish officials emphasized that stabilizing consumer energy costs remains a priority as energy markets navigate broader international volatility.