Poland may reintroduce regulated fuel prices for holiday returns after president blocks windfall tax
Poland's prime minister says regulated fuel prices could return for the final two weeks of the summer holidays if crude oil spikes again, after the president blocked a windfall tax meant to fund price cuts.
Return of regulated prices
Prime Minister Donald Tusk said on Monday that the government is ready to reintroduce regulated fuel prices for the last two weeks of the summer holidays, when many Poles travel back from vacation. The measure would be triggered if crude oil prices rise again due to instability in the Middle East. Tusk told a press conference in Głuchołazy that he had already discussed the plan with the finance minister.
If it turns out that the situation is unstable again, that prices may go up again, we will propose a solution to introduce regulated fuel prices at least for the last two weeks of the holidays, when the return journeys begin, despite this blockade.
He stressed that details would be worked out with the finance ministry later that day. The announcement follows the expiry of the government's earlier CPN (Lower Fuel Prices) programme at the end of June.
Windfall tax blocked by president
Tusk sharply criticised President Karol Nawrocki, who on Friday sent the windfall tax law to the Constitutional Tribunal for preventive review. The law would have imposed a levy on fuel producers and importers that earned excess profits from energy market disruption after the Middle East conflict erupted. The government had earmarked the estimated 4 billion PLN in revenue to offset the cost of fuel price cuts.
Someone maliciously said that we had CPN, those lower fuel prices, and now we have CKN – Karol Nawrocki's prices. Unfortunately, it is a bit like that. It's a pity about those 4 billion, because we really allocated them to lower fuel prices.
The blocked law stipulated that 3.8 billion PLN would be collected this year and the remainder in 2027. Tusk said the president's move was not a veto but had the same practical effect.
CPN programme and its cost
The CPN package was introduced at the end of March, cutting VAT on fuels to 8% and reducing excise duty to the EU minimum. It also set maximum fuel prices at petrol stations. The excise reduction expired in mid-June, and the entire programme ended at the end of June. The finance ministry put the total cost of CPN at about 4.7 billion PLN.
- CPN program cost
- 4.7 billion PLN
- Windfall tax (planned)
- 4 billion PLN
Oil market backdrop
Brent crude was trading around $89 per barrel on Monday afternoon, after briefly surging above $100 per barrel the previous week. Tusk noted that while global prices had eased slightly, the situation in the Middle East remained very unstable and could push prices higher again. He said that during such crises fuel companies earn more, and the windfall tax was designed to capture those extraordinary profits to fund relief for drivers.
- CPN package introduced: VAT cut to 8%, excise reduced to EU minimum
- Excise reduction expires
- CPN program ends: VAT reduction and maximum price regulation lapse
- Brent crude briefly exceeds $100 per barrel
- President Nawrocki sends windfall tax law to Constitutional Tribunal
- PM Tusk announces possible return of regulated fuel prices for last two weeks of holidays
Political tensions
Tusk's remarks deepened the rift with the president over energy policy. By coining the phrase "CKN", he directly blamed Nawrocki for the higher prices motorists now face. The prime minister said he did not understand why the president blocked the tax, adding that the government would find a way to implement regulated prices even without the windfall tax revenue. The finance ministry is expected to present detailed proposals shortly.
