Poland to End Fuel Price Cap in Summer as Government Expects Stabilization

Polish Prime Minister Donald Tusk said on Saturday that Poland will end its fuel price cap in the summer, citing expectations that a conflict involving Iran will ease and prices will stabilize. According to Jin10, Tusk said the measures helped keep Poland’s fuel prices among the cheapest in Europe during the crisis, but the government plans to phase them out by the end of the summer. In March, the Polish government cut value-added tax on fuel to 8% from 23%, lowered excise duty to the European Union’s minimum level, and began setting daily caps on motor fuel prices. Since the measures were introduced, they were extended every two weeks. On Friday, Poland decided to extend the VAT reduction for gasoline and diesel and the price cap through the end of June, but it did not extend the excise-duty reduction.