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Polish MPs vote to cut fuel taxes amid Iran war

27.03.2026 13:00
Poland’s lower house of parliament on Friday approved plans to cut fuel taxes in response to rising prices linked to the United States’ and Israel’s war with Iran.
The lower house of Polands parliament, the Sejm, in session in Warsaw on Friday, March 27, 2026.
The lower house of Poland's parliament, the Sejm, in session in Warsaw on Friday, March 27, 2026.Photo: PAP/Leszek Szymański

The government on Thursday adopted a proposal to reduce value-added tax (VAT) and excise duties on fuel to curb price increases driven by the conflict in the Middle East.

The legislation was fast-tracked through parliament, with Tusk expressing hope it could be passed and signed into law quickly so it can take effect before Easter.

Lawmakers on Friday overwhelmingly backed the measure, with most of the opposition voting in favour, state news agency PAP reported.

The bill now moves to the Senate, the upper house, for review.

It provides for cutting VAT on fuels from 23 percent to 8 percent and lowering excise tax to the minimum level allowed under European Union rules.

The government says the move could reduce pump prices by about PLN 1.20 (around EUR 0.30) per litre.

Tusk told reporters on Thursday that the government would also introduce temporary maximum fuel prices, to be set daily by the energy minister, to ensure the tax cuts translate into lower costs for consumers.

"We have developed a mechanism to ensure that these reductions have a real impact on prices," he said, adding that fuel retailers would be required to pass on the savings to customers.

The measures are also intended to prevent excessive profits by fuel companies during a period of high oil prices, according to Tusk.

He said the government does not currently plan to introduce limits on fuel sales, but warned it could act if lower prices trigger "fuel tourism" by foreign drivers.

"If it turns out that fuel tourism reaches a disturbing scale, we will react," Tusk said, adding that Poland is analysing steps taken by neighbouring Slovakia and that "any measures must comply with the law."

He also said the government could introduce a windfall tax if it finds that fuel companies are making excessive profits as a result of rising oil prices.

Earlier this month, Tusk said Poland faces no risk of fuel shortages despite the Middle East conflict.

(gs)

Source: IAR, PAP, TVP Info