Poland's Tusk weighs partial fuel VAT cut as diesel hits record 8.22 PLN per liter, pending Hormuz outcome

Government waits on Hormuz

Prime Minister Donald Tusk told a press conference on 5 August that the government is ready to react to fuel prices every day but wants to wait 48 hours before deciding on intervention. He cited US President Donald Trump's signal that talks with Iran are going well and that the Strait of Hormuz may be unblocked by Thursday. Tusk noted that global fuel prices have been "minimally, but falling" for three consecutive days.

Tusk said he would meet Finance Minister Andrzej Domański on 5 August to discuss at least a partial application of measures similar to the "Ceny Paliwa Niżej" (CPN) program, which could ease costs for drivers returning from summer holidays. He described the situation as a "multidimensional energy crisis" requiring constant monitoring.

Record prices at the pump

According to data from e-petrol.pl released on 5 August, diesel prices in Poland reached 8.22 PLN per liter after a 23-groszy increase, the highest level in history. Drivers had previously paid above 8 PLN per liter in October 2022, but the current average is the highest ever recorded. Gasoline rose by 11 groszy to 7.55 PLN per liter, the highest since the beginning of the year.

Tusk assessed that Poland ranks between second and seventh from the bottom in Europe for fuel prices. He stated that while this is not bad compared to European partners, it is dire from the perspective of Polish drivers.

Na tle wszystkich naszych partnerów nie jest źle, ale z punktu widzenia polskich kierowców jest fatalnie, bo te ceny są dramatyczne.

CPN program and its costs

The CPN program was in effect from the end of March 2026 and was phased out by 1 July. It included a reduced VAT rate of 8% (down from 23%) and a mechanism for official maximum prices at fuel stations. Excise duty reduction provisions expired earlier, in mid-June. The Finance Ministry reported that the CPN program cost approximately 4.7 billion PLN.

Finance Minister Andrzej Domański said on TVN24 that no decision has been made on a temporary return to fuel market protections. He indicated there is no single specific threshold that would trigger the protective mechanisms.

Jeżeli sytuacja na rynku ropy uległaby ponownemu pogorszeniu, to wtedy oczywiście nadal jest możliwość, aby na pewien okres, chociażby na ostatnie tygodnie wakacji, faktycznie częściowo obniżyć podatek VAT.

Windfall tax blocked by president

Tusk also addressed the windfall profits tax for fuel companies, which President Karol Nawrocki sent to the Constitutional Tribunal for preventive review at the end of July. Nawrocki argued the bill violates the principle that law does not apply retroactively. Tusk said the tax would apply to all fuel companies operating in Poland, not only Orlen, and that the revenue was intended to help finance the CPN program.

Niestety w ogóle nie mamy o czym rozmawiać, bo prezydent Nawrocki stanął po stronie koncernów, nie tylko polskich, po stronie koncernów, nie po stronie kierowców.

Deputy Energy Minister Konrad Wojnarowski indicated on 27 July that his ministry is working on a possible temporary VAT reduction on fuels. Tusk had announced the same day that the government may propose regulated fuel prices for at least the last two weeks of the summer holidays if oil prices rise again due to instability in the Middle East.