Poland to Reintroduce Fuel Price Reduction Measures This August
Government Plans and Economic Context
Announcement of Fuel Price Reduction Measures
WARSAW, Aug 13 (Reuters) - Polish Prime Minister Donald Tusk said on Thursday that the government plans to reintroduce some measures to lower fuel prices in the last two weeks of August.
Details of the VAT Reduction and Price Caps
As well as reducing the VAT on fuel to 8% from 23%, he said the energy minister would announce maximum prices for fuel daily in the period from August 17 to August 31.
Reinstatement of the CPN Program
"We have decided to reinstate a significant part of the CPN (lower fuel prices) program," Tusk told reporters.
Expected Impact on Fuel Prices
He said the VAT cut should translate into a reduction in fuel prices of around 0.90 to more than 1 zloty ($0.2682) per litre, depending on the type of gasoline or diesel.
Background: Previous Measures and Market Fluctuations
Like many other countries, Poland introduced measures in March to cap fuel prices following a surge in energy prices caused by the U.S.-Israeli war with Iran.
The government suspended the curbs at the end of June as tensions in the Middle East subsided and oil and gas prices stabilised, but they rebounded in recent weeks as the conflict drags on — although not to levels seen at the height of the war.
Exchange Rate Information
($1 = 3.7282 zlotys)
Reporting Credits
(Reporting by Anna Wlodarczak-Semczuk, Pawel Florkiewicz and Anna Koper; Editing by Alison Williams)
