Fuel Price Package Lower Only Until Summer. Prime Minister's Announcement

The Polish government will conclude its fuel price reduction program this summer, Prime Minister Donald Tusk announced Saturday. The initiative, designed to shield consumers from escalating fuel costs during a period of crisis, has successfully kept Polish fuel prices among the lowest in Europe.

"We assumed, and we delivered, that we would subsidize prices until summer to prevent them from skyrocketing," Tusk stated during a press conference in Łomża. "We had the cheapest fuel in Europe during this crisis, but of course, we will be ending this project this summer."

The government introduced the "Lower Fuel Prices" (CPN) package in late March. It included a reduction in VAT on fuel from 23% to 8% and a decrease in excise duty by 29 groszy per liter for gasoline and 28 groszy for diesel, bringing them to the lowest levels permitted by the European Union. Additionally, maximum prices were set at fuel stations.

Tusk also pointed to improving prospects for a resolution to the US-Iran conflict. He noted that initial information and decisions, such as the unblocking of Iranian funds by the UAE in connection with progress in peace talks, offer hope that war-related fuel price increases might be halted, allowing prices to return to a more normal level. However, a source close to the Ministry of Finance indicated that while the reduced VAT rate will continue, the lower excise duty rates will not be extended beyond June 30.

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We assumed, and we delivered, that we would subsidize prices until summer to prevent them from skyrocketing. We had the cheapest fuel in Europe during this crisis, but of course, we will be ending this project this summer.