Poland's new fuel price package takes effect

A new fuel pricing package has gone into effect in Poland. Starting Monday and continuing until the end of the Polish school vacation on August 31, a reduced VAT rate of 8 percent is in effect. In addition, the Ministry of Energy sets a daily maximum retail price for fuel, which is determined based on average wholesale prices and the operating costs of the largest suppliers.

The maximum price set for Monday was the equivalent of about 1.49 euros per liter for regular gasoline, about 1.67 euros for premium gasoline, and about 1.71 euros for diesel, as announced by the Ministry of Energy. With this fuel price package, the government in Warsaw aims to provide financial relief to citizens as they return from vacation.

Debate Over Relief for Drivers Also Underway in Germany

In Germany, the “gasoline rebate”—a two-month temporary tax cut on fuel—expired at the end of June. In light of high fuel prices, there are repeated calls to further ease the burden on drivers. Recently, leading SPD politicians, including Secretary-General Tim Klüssendorf, advocated for a cap on fuel prices. The Minister-President of Mecklenburg-Western Pomerania, Manuela Schwesig, who is running for re-election in September, also called for an excess profits tax on oil companies. The Greens are also strongly advocating for such a tax.

According to the ADAC, fuel prices have been too high for weeks. Economics Minister Katherina Reiche (CDU) opposes an excess profits tax, as well as the fuel price cap demanded by the SPD.