Poland Launches 'Ceny Paliwa Niżej' Program with Strict Daily Fuel Price Caps

Poland's government implemented fuel price caps on March 31, 2026, under the "Ceny Paliwa Niżej" package, setting the maximum price for 95-octane gasoline at 6.16 zlotys per liter, 98-octane gasoline at 6.76 zlotys, and diesel at 7.60 zlotys. Energy Minister Miłosz Motyka published the first set of maximum prices in the Polish Monitor on Monday, with the caps taking effect at midnight. The reductions came after days of sharp price increases, with 95-octane gasoline exceeding 7 zlotys per liter at many stations as recently as Monday. Drivers across Poland responded immediately, with stations in Kraków, Poznań, Wrocław, and Opole reporting unusually heavy traffic from early morning hours. Some stations went below the official ceiling — in Kraków's Czyżyński roundabout area, 95 gasoline was available for as low as 5.98 zlotys, and in Kołbaskowo near the German border, the Auchan station offered 95 fuel at 5.98 zlotys and diesel at 7.48 zlotys.

95-octane gasoline: 6.16, 98-octane gasoline: 6.76, Diesel: 7.60

VAT slashed to 8%, excise cuts add further relief The CPN package combines three instruments: a VAT reduction on fuels from 23% to 8%, a cut in excise duty, and the daily maximum price mechanism. The reduced VAT rate applies from March 31 through April 30, according to a regulation issued by the Minister of Finance and Economy. The excise duty reduction runs until April 15 under a separate regulation, with the legal basis allowing temporary cuts through June 30. Under the new excise rates, gasoline is taxed at 1,239 zlotys per 1,000 liters and diesel at 880 zlotys per 1,000 liters. According to calculations by the finance ministry, the excise cut alone costs the state budget 700 million zlotys per month, while the VAT reduction adds another 900 million zlotys — bringing the total monthly cost to over 1.5 billion zlotys. Prime Minister Donald Tusk announced the implementation of the package last week, framing it as protection for Polish household budgets against a global market shock.

CPN package: key changes: VAT on fuels (before: 23%, after: 8% (until April 30)); 95-octane gasoline price cap (before: above 7.00 PLN/liter (market), after: 6.16 PLN/liter maximum); Diesel price cap (before: above 7.60 PLN/liter (market), after: 7.60 PLN/liter maximum)

„On the very first day the new regulations come into force, fuel prices will record a huge drop. This is a real and extremely important effect of the 'Ceny Paliwa Niżej' package. We are lowering VAT, lowering excise duty, setting a maximum retail price. We are keeping our promises, protecting the budgets of Polish families from increases caused by the global crisis on the fuel price market.” — Miłosz Motyka via Głos Szczeciński

Government station in Warsaw offers prices below the ceiling The government-operated fuel station at 69/71 Powsińska Street in Warsaw, run by the Center for Administrative Services of the Government, set its prices below the official maximum — charging 6.14 zlotys per liter for 95 gasoline and 7.52 zlotys for diesel. The station's website still displayed the old prices of 7.36 zlotys for 95 gasoline and 8.59 zlotys for diesel as late as 9:20 a.m. on Tuesday before the update was applied. The facility, open Monday through Friday from 7 a.m. to 7 p.m., offers only 95 gasoline and diesel and has no shop or amenities. Minister of State Assets Wojciech Balczun stood alongside Energy Minister Motyka at a morning press briefing held at an Orlen station on al. Solidarności in Warsaw. Enforcement of the price caps will be carried out by the National Revenue Administration, with fines of up to one million zlotys for stations that exceed the limits.

Middle East conflict drove prices up, Germans cross border to refuel The government attributed the price surge directly to the escalation of conflict in the Middle East, citing US and Israeli attacks on Iran and the blockade of the Strait of Hormuz as the primary drivers of reduced global oil supply. The package is designed to act as an anti-inflationary measure while maintaining fuel supply security, according to the finance ministry. The price gap between Poland and Germany drew cross-border traffic, with German drivers observed refueling at stations near the Polish-German border. In Germany, fuel prices remained around 2 to 2.50 euros per liter on Tuesday. One German driver from Hamburg, where the price stood at 2.32 euros, told reporters he stopped to refuel while visiting family in the area. Despite the relief, some Polish drivers expressed skepticism about the durability of the measures, with one Radio ZET interviewee describing the cuts as temporary and noting that diesel had risen by two zlotys before being reduced by one.

Poland has used VAT and excise reductions on fuel before as a tool to counter energy price shocks. The current CPN package follows a legislative path that amended the law on crude oil stocks and the excise duty law, both of which entered into force on Sunday, March 29, 2026, providing the legal basis for the ministerial regulations that took effect days later. The maximum price mechanism requires daily publication in the Polish Monitor, with prices announced before non-working days remaining valid through the next working day — meaning the Friday announcement will govern prices throughout the Easter holiday period.