Tusk Says Poland to Scrap Emergency Fuel Price Controls This Summer
Speaking in the town of Lomza, Tusk said Warsaw expected the tensions fueled by the Middle East conflict and their ripple effects on global oil markets to subside, paving the way for fuel prices to normalize.
"We had the cheapest fuels in Europe throughout this crisis, but we will be finalizing this project this summer," Tusk told reporters.
The government had already extended reduced value-added tax (VAT) rates and fuel price caps through the end of June, but officials made clear the current package would not be renewed indefinitely.
— How the Crisis Package Took Shape
In March, Warsaw rolled out a broad set of measures aimed at shielding households and businesses from soaring fuel costs triggered by disruptions to global oil supplies following the outbreak of armed conflict involving Iran.
The package included slashing VAT on fuel from 23% to 8%, cutting excise duties to the minimum threshold permitted under EU rules and introducing daily maximum retail prices for petrol and diesel at filling stations.
Finance Minister Andrzej Domanski estimated at the time that the measures were costing the state budget roughly 1.6 billion złotys ($435 million) per month in foregone revenue.
While the VAT reduction and price caps have been extended repeatedly, the excise duty cut was allowed to lapse earlier. Under the latest decision, the remaining measures remain active through June's end.
— Opposition Fires Back
Politicians from the conservative Law and Justice party were quick to criticize the government, arguing it had moved too slowly and that farmers and transport operators had already absorbed substantial fuel cost increases before any relief kicked in.
Despite the political friction, the measures succeeded in keeping Poland among the lowest-priced fuel markets in Europe throughout the crisis period.
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