Poland to Significantly Cut Fuel Taxes Due to Rising Prices in the EU

Poland is preparing a large-scale reduction of fuel taxes amid sharp price increases in Europe due to escalations in the Middle East. The government also plans to limit retail prices at gas stations and is considering additional taxes for energy companies. This is reported by Reuters.

Poland Reduces Fuel Taxes and Limits Prices

Prime Minister Donald Tusk announced that the VAT rate on fuel will decrease from 23% to 8%. The excise tax will also be reduced to the minimum allowable level in the EU.

The new rates will be:

• 29 groszy per liter of gasoline

• 28 groszy per liter of diesel fuel.

According to Tusk, prices could drop by about 1.2 zloty per liter before Easter. At the same time, the government will introduce a maximum price for fuel to prevent tax cuts from leading to increased profits for traders.

“We want this reduction to actually affect prices, not fill the pockets of intermediaries,” emphasized the head of government.

In addition, the authorities are considering the introduction of a so-called excess profit tax on oil companies.

Fuel Prices in the EU and Poland's Reaction to the Crisis

The increase in fuel costs in Europe is linked to military escalation around Iran. In response to the crisis, several countries have already limited prices or introduced tax reliefs, including Romania and Hungary.

In Poland, prices have also skyrocketed, leading to criticism from the opposition. They believe that the government has reacted too late and are demanding compensation for farmers who have already incurred costs during the planting season.

At the same time, the government does not rule out additional measures to prevent a massive influx of foreign drivers seeking cheap fuel. A solution similar to the Slovak model is being considered, where different prices are set for cars with foreign plates.

Finance Minister Andrzej Domański stated that the tax changes will reduce budget revenues by about 1.6 billion zlotys per month. Against this backdrop, Poland's budget deficit is already one of the highest in the EU.

Another pressure factor on prices has been the nearly 50% increase in diesel fuel costs since late February. This is related to U.S. and Israeli strikes on Iran and corresponding attacks from Tehran.

As of March 26, 2026, gas station networks in Ukraine updated fuel prices. The average cost of A-95 gasoline was 72.72 UAH per liter, while the average price of diesel fuel reached 84.48 UAH per liter.