Poland Implements Emergency Fuel Price Caps and Tax Cuts to Combat Global Energy Crisis

Poland published two laws aimed at lowering fuel prices in the official Journal of Laws on Saturday, March 28, 2026, with both acts set to enter into force on Sunday, March 29. The legislation, known as the CPN package ("Ceny Paliwa Niżej" — "Fuel Prices Lower"), introduces a maximum retail fuel price mechanism and enables a temporary reduction in excise duty and VAT on petrol and diesel. President Karol Nawrocki signed both laws on Friday, March 27, the same day the Sejm and Senate passed them, following an extraordinary government session held the day before. The government's stated goal was for the new rules to take effect before Easter, ahead of the peak holiday travel period. The publication came amid a sharp rise in global fuel prices linked to the ongoing conflict involving the United States, Israel, and Iran, as well as the Russia-Ukraine war.

Maximum price formula and excise cuts take shape The first law, amending the act on crude oil reserves, establishes a formula for calculating the maximum retail fuel price at petrol stations. That formula incorporates the average wholesale fuel price on the domestic market, plus excise duty, the fuel charge, a sales margin of 0.30 (PLN per liter) — maximum allowed sales margin per liter under new formula, and VAT. Energy Minister Miłosz Motyka will announce the maximum price through an official notice, with the rate applying from the day after publication. If the notice is issued before non-working days or public holidays, the rate remains in force until the next working day. Sellers retain the right to offer fuel below the maximum price. The second law, amending the Excise Duty Act, allows the government to temporarily reduce excise rates on diesel and motor gasoline by regulation until June 30, 2026. Deputy Finance Minister Jarosław Neneman confirmed during parliamentary proceedings that draft regulations cutting excise duty on petrol by 29 groszy per liter and on diesel by 28 groszy per liter were already prepared, alongside a draft reducing VAT on fuel.

Excise duty reduction under CPN package: Petrol (gasoline 95) excise cut (before: Standard rate, after: Reduced by 0.29 PLN/liter (until June 30, 2026)); Diesel excise cut (before: Standard rate, after: Reduced by 0.28 PLN/liter (until June 30, 2026))

Budget to absorb over 1.6 billion zlotys monthly in lost revenue The Ministry of Finance calculated that the excise duty reduction will cost the state budget 700 million zlotys per month, while the VAT reduction will cost an additional 900 million zlotys per month. Prime Minister Donald Tusk framed the package as a necessary response to global instability. „We all pay a high price for the wars of Israel and the USA with Iran and of Russia with Ukraine. Not only at gas stations. Our response is the government's tough but responsible decisions (SAFE, CPN) and the unity of the nation around security issues.” — Donald Tusk via wnp.pl Energy Minister Miłosz Motyka stressed that global fuel markets had risen by over 10 percent in just two days, while noting that Orlen's wholesale prices increased by less than 5 percent over the same period. He also stated that wholesale fuel prices on Saturday were more than 200 zlotys lower than exactly one week earlier. Motyka argued that the CPN package would ensure retail prices remain approximately 20 percent lower than they would be under standard taxation, regardless of market conditions. Tusk also warned that if fuel companies were found to have earned excessive profits, the government could apply a windfall tax on those profits.

Excise duty reduction: 700, VAT reduction: 900

Orlen raises wholesale prices on the same day laws are published The publication of the laws was immediately overshadowed by a controversy over both the timing of their release and simultaneous wholesale price increases by Orlen, Poland's dominant state-controlled energy company. On Saturday, Orlen raised the wholesale price of Ekodiesel diesel by 171 zlotys per cubic meter, bringing it to 7,041 zlotys per cubic meter, up from 6,870 zlotys on Friday. The wholesale price of Eurosuper 95 petrol rose by 103 zlotys per cubic meter to 5,714 zlotys, from 5,611 zlotys the day before. Paweł Szefernaker, Head of the Office of the President of the Republic of Poland, criticized the government for what he described as more than 18 hours of delay between President Nawrocki's signature and the laws' publication. „After more than 18 hours since President Nawrocki's signature, the government finally published the laws. Pressure makes sense.” — Paweł Szefernaker via wpolityce.pl Law and Justice MP Janusz Kowalski, a former deputy minister of state assets, accused Orlen of raising wholesale prices at the very moment the tax-cutting laws were enacted, and questioned whether Polish consumers would see any net benefit. „The Tusk government not only delayed the publication of laws that were passed very quickly and signed by the president — every hour of delay meant millions of zlotys in losses for Polish families and the Polish economy — but there is also clearly a move related to wholesale fuel prices.” — Janusz Kowalski via wpolityce.pl

The rise in global fuel prices accelerated after the United States and Israel launched military operations against Iran on February 28, 2026, in what became known as Operation Epic Fury. In the days following the outbreak of hostilities, crude oil and finished fuel prices on world markets began climbing sharply, driven by a blockade of the Strait of Hormuz — a critical chokepoint for maritime energy transport from the region — and attacks on extraction and refining infrastructure. According to source articles, Saturday, March 28, marked four weeks since those initial strikes. Poland's dependence on imported fuel amplified the domestic impact, with Energy Minister Motyka noting that 40 percent of ready diesel consumed in Poland comes from imports.