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Poland announces tax cuts to lower fuel prices

The Polish Government has announced measures to counter surging domestic fuel prices caused by the ongoing conflict in the Middle-East (Notes from Poland, 26/03/2026). VAT on fuel will be slashed from 23% to 8%, and excise duties will be lowered to the absolute minimum allowed under EU regulations. The country will also set a daily maximum retail price for fuel.

Combined, these measures are expected to drop prices at the pump by up to PLN1.20/l (EUR0.28/l) for both gasoline and diesel. Implementing the VAT cut will reduce monthly state revenues by about PLN900m (EUR210m), while lowering excise duties will incur an additional cost of PLN700m (EUR163m).