Fuel prices to rise in Poland; government sets new maximums

Fuel prices at Polish stations will increase starting Wednesday, as the government has announced new maximum price caps. A liter of 95-octane gasoline will be capped at 6.46 Polish zloty, while 98-octane gasoline will not exceed 7.26 zloty. Diesel fuel will have a maximum price of 7.47 zloty per liter.

The Ministry of Energy published these new maximum rates, signaling a rise across all fuel types. The next announcement regarding maximum fuel prices for Thursday is expected on Wednesday. Since Monday, a limited version of the "Lower Fuel Prices" package has been in effect, featuring a reduced VAT rate and maximum fuel prices at stations.

The maximum price is determined by a specific formula. This formula includes the average wholesale price of fuel on the domestic market, plus excise duty, fuel fee, a sales margin of 0.30 zloty per liter, and VAT. Selling fuel above these maximum prices can result in a fine of up to 1 million Polish zloty.

The government reintroduced the reduced VAT rate on gasoline and diesel fuel from 23% to 8% effective Monday, which will remain in place until August 31. This measure is part of the "CPN" package, initially introduced in late March in response to rapidly increasing oil prices linked to the conflict between the U.S. and Iran. The original CPN package, which included a temporary reduction in excise duty on fuels, expired at the end of June.

The Ministry of Finance reported that the cost of the CPN program to date is approximately 4.7 billion Polish zloty. The renewed VAT reduction for the last two weeks of August is expected to cost the state budget 495 million Polish zloty.

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On Wednesday, a liter of gasoline 95 is to cost no more than 6.46 zloty, gasoline 98 – 7.26 zloty, and diesel fuel – 7.47 zloty.