President Karol Nawrocki approved the legislation after it was passed by both houses of parliament with broad support, state news agency PAP reported.
The new rules cut value-added tax on fuels from 23 percent to 8 percent and reduce excise taxes to the minimum levels allowed under European Union regulations.
The package, adopted by the government on Thursday, was fast-tracked through parliament, with most opposition lawmakers backing the measures.
Prime Minister Donald Tusk said he hoped the legislation would take effect before Easter.
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 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.
He added that 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