Poland Introduces a Surplus Profit Tax for Oil Companies

To lower gasoline and diesel prices, Poland is introducing a windfall profits tax on oil companies. President Karol Nawrocki said in a speech on Thursday evening that he had signed a bill to that effect. “Every zloty collected under this law must be spent on lowering fuel prices.”

Prime Minister Donald Tusk’s center-left government plans to use the revenue from the excess profits tax to finance a new round of fuel price cuts. Finance Minister Andrzej Domanski expects fuel prices to fall by the equivalent of 23 cents per liter by the end of this week. In Poland, premium gasoline currently costs an average of the equivalent of 2.05 euros per liter, and diesel 2.06 euros per liter. 

First attempt blocked by veto

The law introducing the excess profits tax had sparked political wrangling in Poland between the government and the right-wing conservative president. Nawrocki had vetoed the government’s first attempt in the summer. Under public pressure, he has now signed the law, but at the same time has asked the Constitutional Court to review it.

In Germany, too, an excess profits tax has been under discussion for months. Chancellor Friedrich Merz and Economy Minister Katherina Reiche (both CDU) oppose it, while the SPD, led by Vice Chancellor Lars Klingbeil, supports it. An initiative by the finance minister at the EU level was provisionally rejected by EU Economic Affairs Commissioner Valdis Dombrovskis. Lower Saxony’s Minister-President Olaf Lies (SPD) called for the tax to be introduced nationally if necessary.