Fuel for less than PLN 6 for the May weekend? The government is preparing to extend the reduction program

It is possible to extend the CPN program until May – according to Tuesday's statement by the Minister of Finance and Economy, Andrzej Domański. He noted that the decision on this matter will depend on further developments on the oil market and geopolitical factors.

– Both VAT and excise duty on fuel will remain at a reduced level until the end of April. What's next? Well, of course we will analyze the situation. It is difficult to imagine that these changes in the market could take place so quickly at the moment, so that a return to higher excise duty and higher VAT would be possible already in the first days of May – said Domański on TVN.

As the minister pointed out, Thanks to the program, fuel prices at stations are lower by approximately PLN 1.20 per liter on average for both petrol and diesel. The cost of operating the program is approximately PLN 1.6 billion per month.

The government is analyzing the market situation

Domański recalled that oil prices have recently fallen, but the international situation remains tense. He pointed out, among others: to continuing problems in the Middle East and restrictions on navigation through the Strait of Hormuz.

The Minister added that the applicable regulations were designed in a way that ensures flexibility in shaping tax rates, which enables quick response to changing market conditions.

“Fuel Prices Lower”, i.e. maximum fuel prices

The government program “Fuel Prices Lower”, in force since March 31, assumes a reduction in VAT on fuel from 23 to 8 percent. and a reduction in excise duty (to 29 gr per liter of petrol and 28 gr per liter of diesel oil – this is the lowest level allowed by the EU). Both regulations (both on VAT and excise duty) are valid until the end of April.

Moreover, in accordance with the regulations, the Ministry of Energy publishes an announcement on maximum fuel prices every weekday. The maximum price is valid from the day following its publication in Monitor Polski. The maximum price is determined according to a specific formula, including the average wholesale price of fuels on the domestic market, plus excise duty, fuel fee, sales margin of PLN 0.30 per liter and VAT.

On Wednesday, a liter of EU95 petrol will cost no more than PLN 5.95, EU98 petrol – PLN 6.50, and diesel oil – PLN 6.75 – according to the Tuesday announcement of the Minister of Energy. This means that prices at gas stations will fall to the lowest level since the introduction of the government “Fuel Prices Lower” package. (PAP)

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