Fuel in Poland will become cheaper: government reinstates price limits

Starting Monday, August 17, Poland will once again enforce maximum retail prices for gasoline and diesel fuel. The Ministry of Energy published the ceiling prices above which gas stations will not be able to sell fuel on that day.

The maximum price for A-95 gasoline will be 6.41 zloty per liter, for A-98 gasoline 7.20 zloty, and for diesel fuel 7.37 zloty per liter. The Polish government expects that after the reinstatement of support, refueling cars will become noticeably cheaper.

Simultaneously, from August 17, Poland will reduce the VAT rate on motor fuel from 23% to 8%. The preferential rate will apply until August 31 and will cover, among others, automotive gasoline and diesel. The relevant regulation of the Ministry of Finance and Economy was published on August 13.

The maximum price in Poland is calculated on the basis of the wholesale fuel price, taxes and fees, and a fixed component of sales costs of 0.30 zloty per liter. The indicator may be revised daily: the next announcement of the Ministry of Energy is to determine the ceiling prices already for August 18.

A similar mechanism operated in Poland in the spring and early summer within the governmental program Ceny Paliwa Niżej. After the program ended at the end of June, the reduced VAT and state limits on retail prices ceased to apply, and fuel at Polish gas stations became more expensive.

Sources: Business Insider Polska, Dziennik Ustaw