August 31 marks the conclusion of the CPN fuel price cap, which temporarily restricted fuel prices and implemented an 8% VAT rate. Currently, the maximum price for Pb95 petrol is 6.64 PLN per liter, while Pb98 costs 7.46 PLN, and diesel is priced at 7.31 PLN. Starting Tuesday, prices are expected to rise considerably.
From September 1, the standard VAT rate of 23% will be reinstated for petrol and diesel previously covered by the CPN package. This change signals the end of tax preferences, leading to a rise in retail fuel prices.
Analysts project that the increase could be approximately 60 to 90 groszy per liter for both petrol and diesel.
The CPN package was reintroduced on August 17, establishing a maximum selling price for fuel based on a specified formula that considered factors like the national average wholesale price, excise duty, fuel fee, a retail margin of 30 groszy per liter, and VAT.
Fuel vendors exceeding the established limit faced penalties of up to 1 million PLN.
Previous Implementations of the CPN Package
This is not the first instance of this measure being implemented this year. The original CPN package was introduced in late March due to rising oil prices stemming from the conflict between the United States and Israel against Iran, which began on February 28.
The initial regulations lasted until the end of June and included reduced VAT on petrol and diesel along with a mechanism for setting maximum prices at fuel stations. The excise duty was also temporarily lowered, although this aspect expired in mid-June.
The Ministry of Finance reported that the total cost of the CPN package’s previous implementation was approximately 4.7 billion PLN.
The recent VAT reduction on fuel in late August is estimated to have cost the state budget around 495 million PLN.
