Poland to cut fuel VAT, cap pump prices for rest of August, PM says

Poland will temporarily cut value-added tax (VAT) on fuel and impose maximum prices at gas stations from August 17 through the end of the month to ease costs for motorists, Prime Minister Donald Tusk said on Thursday.

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Image by IADE-Michoko from Pixabay

The VAT rate on fuel will be reduced to 8 percent during the period, Tusk said, adding that the measure should lower pump prices by about PLN 0.90 to more than PLN 1 (EUR 0.23, USD 0.27) per litre compared with what they would have been without the tax cut.

"Poland will be at the absolute forefront in Europe when it comes to the lowest fuel prices," Tusk said at a news conference.

Polish Prime Minister Donald Tusk. Photo: PAP/Piotr Nowak

The measure is part of the government's Fuel Prices Down (CPN) programme. The programme was introduced in response to a sharp rise in oil prices linked to the conflict involving the United States, Israel and Iran.

Tusk said the VAT reduction would run from Monday through August 31.

To prevent fuel retailers from taking advantage of the tax cut by raising prices, Energy Minister Miłosz Motyka will announce the maximum permissible fuel prices at gas stations each day, Tusk said.

The government had previously introduced reduced VAT rates and regulated prices for some fuels, mainly gasoline and diesel, under the CPN programme. A temporary cut in fuel excise tax was also introduced but expired in mid-June.

The finance ministry said the CPN programme has so far cost about PLN 4.7 billion (EUR 1.1 billion, USD 1.25 billion).

Tusk said Finance Minister Andrzej Domański had worked to find funding for the latest tax cut despite pressure on public finances, including high defence spending.

Tusk also criticised President Karol Nawrocki's recent decision to refer a bill on a windfall tax for fuel companies to the constitutional court for review.

Revenue from the tax was intended to partly offset the loss of revenue caused by the CPN measures introduced in March.

Motyka said on X that the government's measures would provide tangible relief for Polish drivers.

Mimo blokady prezydenta przywracamy pakiet CPN! Od poniedziałku ceny na stacjach będą niższe! pic.twitter.com/26kxgPl6ii

— Miłosz Motyka (@motykamilosz) August 13, 2026

(gs)

Source: IAR/PAP