Tusk revives CPN fuel price program, cutting VAT to 8% from August 17 to 31

CPN returns for two weeks

Prime Minister Donald Tusk announced on August 13, 2026, that the government would partially revive the CPN (Ceny Paliw Niżej, or Fuel Prices Lower) program from Monday, August 17, through Monday, August 31. The core measure is a reduction of VAT on fuels from 23% to 8%, which Tusk said should translate into price cuts of 90 groszy to over 1 zł per litre at the pump. The decision was made jointly with the Minister of Finance Andrzej Domański and the Minister of Energy Miłosz Motyka. Tusk described logistical difficulties in restoring the program and noted that Domański, in the prime minister's words, had been performing miracles to push the tax cut through.

Background of the original program

The CPN package was first introduced in late March 2026 in response to oil and fuel price surges triggered by the Middle East conflict. It combined three instruments: a VAT cut on fuels to 8%, an excise reduction of 29 groszy per litre on petrol and 28 groszy per litre on diesel, and a government-set maximum price mechanism at stations. The excise reduction expired in mid-June, and the reduced VAT and maximum price rules lapsed on June 30, after a preliminary agreement between the United States and Iran brought relative calm to energy markets. The Ministry of Finance reported that the original CPN cost approximately 4.7 billion zł.

Political friction with the president

Tusk used the announcement to attack President Karol Nawrocki, accusing him of blocking the government's planned financing mechanism. The government had intended to fund CPN through a tax on excess profits of fuel companies, but Nawrocki sent the relevant bill to the Constitutional Tribunal (Trybunał Konstytucyjny). In the coalition's narrative, the presidential move delayed the decision to reintroduce fuel price cuts earlier. Tusk stated that the minister of energy would announce the highest price at fuel stations each day during the program's operation.

Current market prices

Fuel prices had already begun falling in the first half of August, driven by cheaper crude oil on wholesale markets and deep drops in domestic wholesale fuel prices. According to e-petrol data cited on August 12, the national average for Pb95 petrol was 7.29 zł per litre, down 26 groszy from the previous week. Pb98 averaged 8.09 zł per litre, also down 26 groszy. Diesel stood at 8.09 zł per litre, a drop of 13 groszy. LPG prices were reported at 2.29 zł per litre by gazetaprawna.pl, while FAKT24.pl cited a figure of 2.97 zł per litre.

Before the original CPN was introduced in March, average prices had been 7.16 zł per litre for Pb95, 7.85 zł for Pb98, and 8.75 zł for diesel. After the program took effect, prices fell significantly and remained stable for the following months. Wholesale prices as of August 12 remained volatile, with Pb95 at approximately 5,484 zł per cubic metre and diesel at approximately 6,379.80 zł per cubic metre, according to e-petrol.

What comes next

The new CPN version appears narrower than the original, focusing on the VAT reduction without a confirmed return of the excise cut. Minister Motyka had indicated on August 12 in Radio ZET that the decision would come during that week, and the earlier considered variant focused primarily on a temporary VAT reduction while leaving excise unchanged. The program covers the period of return trips from holidays and the start of the school year, which Tusk described as critical days for millions of drivers.