Poland Caps Fuel Prices and Slashes Taxes to Ease Costs
Poland will cut fuel VAT and cap retail prices to lower costs for drivers. The move sent shares in state refiner Orlen down by more than 6 percent on Thursday.
The government of Poland has announced a sweeping set of measures designed to lower fuel costs for consumers, including significant tax reductions and the implementation of a retail price cap. Prime Minister Donald Tusk detailed the plan during a news conference on Thursday, noting that the administration is also exploring a potential windfall tax on energy companies. The announcement led to a sharp decline in the market value of state-controlled refiner ORLEN SA, with shares falling more than 6% following the news.
Under the proposed changes, the value-added tax (VAT) on fuel will be slashed from 23% to 8%, while excise duties will be lowered to the minimum levels permitted by the European Union. This equates to a cut of 29 groszy per liter for petrol and 28 groszy for diesel. These actions align Poland with other regional neighbors, such as Romania and Hungary, which have already introduced price controls to mitigate the impact of rising global energy prices.
