The measures taken by Poland to combat the rise in fuel prices, against the backdrop of the war in Iran

The Polish Prime Minister Donald Tusk announced measures to reduce fuel prices amid rising energy costs caused by the war in Iran. Poland will lower the VAT on fuel from 23% to 8% and will reduce excise duties to the minimum allowed by EU regulations, which could lead to a decrease of approximately 1.2 zlotys (0.32 dollars) per liter.

Tusk mentioned that maximum prices for fuel will be set, and the Government could impose an exceptional tax on the profits of oil companies.

Shares of the state refinery Orlen fell by over 6% after the announcement. Additionally, Poland will analyze the system in Slovakia, where foreign drivers pay more for fuel, to prevent abuses. The Minister of Finance estimated that the VAT reduction will cost 900 million zlotys per month, and the reduction of excise duties will add 700 million zlotys. In Slovakia, foreign drivers pay a higher price for diesel, a measure contested by the European Commission.