Poland Temporarily Reduces the Additional Tax on Fuel

Poland is temporarily lowering the value-added tax on gasoline and diesel. From next Monday until the end of the Polish school vacation on August 31, the tax rate will be reduced from the current 23 percent to 8 percent, said Prime Minister Donald Tusk. 

Tusk emphasized that this is intended to provide financial relief to consumers, especially as they return from vacation. In addition, the energy minister will set a daily maximum retail price for fuel, which will be determined based on average wholesale prices and the operating costs of the largest suppliers.

According to Tusk, these measures will reduce the price of diesel and gasoline by about 23 cents per liter. On Thursday, a liter of regular gasoline in the neighboring country cost the equivalent of about 1.66 euros on average, according to industry observers. Diesel cost around 1.88 euros per liter.

Only part of the fuel price package is being reinstated

Poland is thus reinstating part of the fuel price package that the government had introduced after the start of the war in Iran in response to rising fuel costs. From late March through late June, it wasn’t just the reduced VAT rate that was in effect. The energy minister also had the option to reduce the energy tax on fuel.