Information about the ceasefire between Washington and Tehran resulted in a sharp drop in oil prices. A barrel of WTI dropped to around $96. (over 14% down), and Brent became cheaper by approx. 13%. up to approx. $95 This is the investors' reaction to the news that this is a condition of the agreement opening of the Strait of Hormuza key passageway in the trade of energy resources from the Persian Gulf.
In response to the dynamic increase in fuel prices, the Polish government introduced the CPN (Fuel Prices Lower) program. It assumes, among others: VAT reduction on fuels from 23 to 8 percent. and lower excise tax. However, both solutions are temporary – the reduced VAT was introduced until the end of April, and the lower excise tax is valid until April 15.
Is improvement market sentiment will change these plans? The ministry assures that it does not intend to suspend the program for now. “The Fuel Prices Below package remains fully maintained. Further decisions in this regard will depend, among others, on: on the development of the geopolitical situation in the Middle East, which affects oil and fuel prices on international markets,” emphasizes the Ministry of Energy in the response sent to us.
As he adds, “geopolitical stabilization and signals of the end of the conflict remain key factors supporting positive scenarios for fuel prices“.
What next with the reduced excise tax?
The ministry has not decided whether the government will extend the current aidincluding, for example, an excise tax reduction that is valid for another week. “The Ministry of Energy conducts ongoing monitoring of the situation on the domestic and international markets, analyzing conditions affecting the security of supplies and the level of stocks,” he replies.
“The government's priority remains to ensure stable and uninterrupted fuel supplies to customers in Poland, at the lowest possible prices, while maintaining the flexibility of the system and readiness to respond to changing market conditions” – it was stated.
Last week, Energy Minister Miłosz Motyka emphasized during a press conference that the government's “Lower Fuel Prices” package will be maintained as long as needed. He added that if the price of crude oil remains high for a long time, he would be in favor of extending the solutions reducing fuel prices.
In turn, the Minister of Finance and Economy, Andrzej Domański, admitted on Polsat News that we would have to wait a few days for fuel price reductions.
— We will analyze the situation and take appropriate actions — said Domański in response to a question about a possible extension of the CPN program. The politician had previously calculated that it would be monthly the cost of VAT and excise tax reductions totals approximately PLN 1.6 billion.
