Gasoline at 6.41 PLN, Diesel at 7.37 PLN: Government Sets Tuesday Price Limits

The Polish government has announced maximum fuel prices for Tuesday, August 18, maintaining current rates. Drivers will pay no more than 6.41 Polish zlotys per liter for gasoline 95, 7.20 zlotys for gasoline 98, and 7.37 zlotys for diesel.

These price caps are unchanged from Monday's figures. The government's "Lower Fuel Prices" package, which was reintroduced with some limitations starting Monday, is now in effect. This package aims to curb fuel costs for consumers.

The measures include a reduced Value Added Tax (VAT) on gasoline and diesel, lowered from 23% to 8%. This reduced VAT rate is applicable from Monday through August 31. Additionally, the government has set maximum retail prices for these fuels.

Selling fuel at a price exceeding these maximums carries a significant penalty, with fines potentially reaching up to 1 million Polish zlotys. The government introduced the "Lower Fuel Prices" package in late March as a response to rapidly rising oil prices, which were exacerbated by the conflict between the USA and Iran that began on February 28. The initial package, which also included a temporary reduction in excise duty on fuels, was in effect until mid-June. The Ministry of Finance estimates the cost of the fuel price support program to date at approximately 4.7 billion Polish zlotys. Reinstating the reduced VAT rate for the final two weeks of August is expected to cost the state budget an additional 495 million zlotys.