Poland Enacts 'Ceny Paliwa Niżej' Law to Lower Gas Station Prices from Tuesday

Poland's government published the legal framework for its "Ceny Paliwa Niżej" fuel price package in the Journal of Laws on Saturday, March 28, with drivers expected to see lower prices at petrol stations from Tuesday, March 31. The package combines a temporary cut in VAT on fuels to 8 percent, a reduction in excise duty, and the introduction of a legally enforced maximum fuel price. Minister of Finance and Economy Andrzej Domański confirmed the timeline on TVN24, noting that petrol stations require approximately two days to adapt their systems to the new rates. Energy Minister Miłosz Motyka said the first announcement of maximum fuel prices would be published by his ministry on Monday, March 30. The government framed the measures as a response to inflationary pressure and a means of stabilizing the fuel market ahead of the Easter holiday travel peak.

Two-day gap before pumps reflect new rates The reduced VAT rate of 8 percent applies from March 31 to April 30, 2026, while the reduced excise duty takes effect one day earlier, on March 30, and runs until April 15, with the possibility of extension until June 30. The excise duty on gasoline has been set at 1239 (PLN per 1,000 liters) — reduced excise rate on gasoline, while diesel fuel and biocomponents used as standalone fuels will be taxed at 880 zł per 1,000 liters. Despite the laws entering into force on Sunday, March 29, actual price changes at petrol stations are not expected before Tuesday due to the need to reconfigure point-of-sale systems and work through existing fuel stocks. „Already from Tuesday we should see lower prices at gas stations, both gasoline and diesel. Today the texts of the laws were published and I signed regulations concerning the reduction of the VAT rate. We need about two days for gas stations to adapt their systems to the new rate” — Andrzej Domański via TVN24 When asked at what specific hour on Tuesday prices would change, Domański acknowledged that the timing depends on the stock level of each individual station.

CPN Fuel Tax Changes: VAT rate on fuels (before: Standard rate (23%), after: 8% from March 31 to April 30); Excise duty on gasoline (before: Standard rate, after: 1,239 PLN/1,000 liters from March 30 to April 15); Excise duty on diesel and biocomponents (before: Standard rate, after: 880 PLN/1,000 liters from March 30 to April 15)

Maximum price formula caps what stations can charge A central element of the package is the introduction of a legally binding maximum fuel price, calculated according to a formula that includes the average wholesale fuel price on the domestic market, excise duty, the fuel fee, a sales margin capped at 0.30 zł per liter, and VAT. During the period when reduced VAT rates apply, fuel sellers will be legally required to charge no more than the calculated maximum. The Ministry of Energy will publish the applicable maximum price announcement every day, starting Monday, March 30. Sellers who exceed the maximum price face fines of up to 1 million zł, and compliance inspections will be carried out by the National Revenue Administration. Domański said the arrangement combines market competition with direct state oversight to prevent price manipulation by wholesalers and retailers.

„On the one hand, market mechanisms will operate, and on the other hand, there will be the firm hand of the state to prevent prices from being manipulated. Besides, Minister Motyka will set the maximum price, also based on international indices. He will check whether wholesalers are not overcharging him. The entire process will be supervised” — Andrzej Domański via PAP

Budget absorbs 1.6 billion zloty monthly cost of cuts The fiscal cost of the package is substantial. According to estimates by the Ministry of Finance, the excise duty reduction will cost the state budget around 700 (million PLN per month) — monthly budget cost of excise duty cut, while the VAT reduction will cost an additional 900 million zł per month. The legislative process moved at an exceptional pace: the government adopted the draft laws at an extraordinary cabinet session on Thursday, the Sejm passed both acts the same day work began, the Senate approved them, and President Karol Nawrocki signed them into law on Friday. The government's stated goal was to have the new rules in place before Easter, when fuel demand typically rises sharply due to holiday travel. Prime Minister Donald Tusk indicated the CPN package is designed to translate directly into lower pump prices, and separately announced that if fuel companies are found to be earning excessive profits, the government could apply a windfall tax on those margins. The government said it does not rule out further measures if price manipulation is detected despite the new controls.

Poland has used temporary fuel tax reductions before as a tool to manage consumer price pressure. The current package follows a legislative path that compressed what is normally a multi-week parliamentary process into a single day, reflecting the government's stated urgency ahead of the Easter period. The "Ceny Paliwa Niżej" package was adopted at an extraordinary session of the Council of Ministers on March 26, 2026, and published in the Journal of Laws two days later on March 28.

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