Polish government and president clash over fuel tax bills as pump prices rise

Competing legislative proposals

Retail fuel prices in Poland reached approximately 7.9 zlotys per litre for Pb95 petrol and nearly 8.8 zlotys per litre for diesel in late September 2026. Following the expiration of earlier fuel price shield measures, the Sejm voted to adopt a windfall tax on extraordinary profits generated by fuel companies between March 2026 and March 2027 from the sale of liquid fuels. The legislation, which is currently before the Senate, aims to raise an estimated 4 billion zlotys to finance a third edition of the "Ceny Paliw Niżej" (CPN) relief program, reducing value-added tax and excise duty on fuel. In response, President Karol Nawrocki submitted an alternative bill titled "Paliwo Kosztuje Normalnie". The presidential plan proposes suspending the retail sales tax until 31 March 2027, setting statutory caps on refinery, import, and wholesale margins, and allowing flexible reductions in excise duties.

Government warnings over supply shortages

Cabinet officials rejected the presidential initiative, arguing that margin limits would disrupt market supply. Speaking at the New Mobility Congress in Katowice, Energy Minister Miłosz Motyka stated that capping margins would render fuel imports to Poland unprofitable and encourage speculative exports. Motyka argued that similar price suppression policies had previously resulted in weeks of petrol station shortages under former Orlen management. He maintained that the government windfall tax could reduce prices by more than 1 zloty per litre if enacted.

“To niestety doprowadzi do braków na stacjach. Chyba że taka jest intencja pałacu prezydenckiego, żeby paliwo nie tylko było drogie, ale żeby go w ogóle nie było”

Pb95 petrol7.9

Diesel8.8

Pb95 petrol

7.9 PLN/l

Diesel

8.8 PLN/l

Data from the article text

Parliamentary impasse and constitutional dispute

The confrontation follows Nawrocki's decision in July to refer an earlier windfall tax bill to the Constitutional Tribunal under preventive control, with the presidential office arguing that the measure violated prohibitions against retroactive legislation. Prime Minister Donald Tusk declared that the government would immediately restore the CPN price reductions once the president signs the revised windfall tax. Sejm Marshal Włodzimierz Czarzasty stated that parliament will refuse to debate Nawrocki's bill until the president acts on the government measure. Czarzasty argued that the presidential proposal creates unbudgeted revenue losses that would ultimately fall on taxpayers rather than fuel producers.

“Niech pan podpisze ustawę, która jest zaproponowana przez rząd, bo rząd rządzi, a prezydent reprezentuje Polskę. I taki jest podział kompetencji.”

Fiscal debate and international pressures

European fuel prices have experienced upward pressure following international tensions and a temporary shutdown of the Saudi East-West pipeline, which removed 5% of global oil output. Domestic economists have expressed doubts about broad fuel subsidies. Fiscal Council expert Professor Jacek Tomkiewicz stated that state finances are already strained and cannot sustain further rounds of fuel relief. Tomkiewicz noted that subsidy programs primarily benefit drivers who travel the most while providing no relief to public transit users, recommending energy conservation and remote work measures instead.