Poland adjusts fuel caps for late August as petrol prices rise and diesel drops

Weekend price limits

Polish fuel stations will operate under revised maximum retail prices from Saturday, 29 August through Monday, 31 August 2026, following a Friday announcement by Minister of Energy Miłosz Motyka. Petrol prices will increase while diesel prices will decrease across the country during the final weekend of the summer holiday season. Drivers purchasing standard 95-octane petrol will pay up to 6.64 PLN per litre, representing a 7-grosz increase over the Friday ceiling of 6.57 PLN. The maximum price for 98-octane petrol will climb by 9 groszy to 7.46 PLN per litre, compared with the Friday limit of 7.37 PLN. In contrast, the price cap for diesel fuel will drop by 5 groszy, declining from Friday's limit of 7.36 PLN to 7.31 PLN per litre. The Ministry of Energy will publish its next pricing announcement on Monday, 31 August, to set the price limits taking effect on Tuesday.

The maximum price mechanism

The price limits function under the renewed Ceny Paliwa Niżej framework, which regulates retail fuel charges across Poland through a legally defined calculation. The statutory formula calculates maximum prices by combining the average domestic wholesale fuel price, excise duty, fuel fees, VAT, and a fixed retail sales margin set at 0.30 PLN per litre. All entities selling motor fuels in Poland are legally required to keep their pump prices at or below these limits for the duration of the announcement period. Service stations that sell fuel above the established maximum price risk administrative fines reaching up to 1 million PLN. The system reintroduced these mandatory ceilings on 17 August 2026 to protect consumers from sudden retail price increases.

Program background and fiscal cost

The government first introduced the Ceny Paliwa Niżej package in late March 2026 in response to rising global crude oil prices triggered by the conflict between the United States, Israel, and Iran that erupted on 28 February. On 31 March 2026, the first day the maximum price system took effect, price caps were set at 6.16 PLN per litre for 95 petrol, 6.76 PLN for 98 petrol, and 7.60 PLN for diesel. The initial support scheme operated until the end of June and included a temporary reduction in fuel excise duty that expired in mid-June. Data from the Ministry of Finance indicates that the total cost of the program during its initial run reached approximately 4.7 billion PLN. Prime Minister Donald Tusk announced the late-August return of the package, indicating that the combined measures should lower fuel costs for motorists by 0.90 PLN to more than 1.00 PLN per litre.

Expiration of tax relief

The current phase of fuel relief relies on an amended regulation from the Minister of Finance and Economy that entered into force on 13 August 2026, temporarily reducing the VAT rate on petrol and diesel from 23% to 8%. The preferential tax rate became operational at fuel stations on 17 August and is scheduled to expire at the end of the day on 31 August. The Ministry of Finance estimated that this two-week August VAT reduction will cost the state budget roughly 495 million PLN. With the government signalling that the support package will not be extended into September, fuel prices are set to transition back to standard taxation rules. The Ministry of Energy will issue its next price notice on Monday to determine the price limits that will apply for Tuesday, 1 September.