Legal Alert | Changes in Fuel Prices, VAT and Excise Duty

In response to the current geopolitical situation, in particular the conflict in the Middle East, the rise in crude oil and fuel prices on global markets, and inflationary pressure on the Polish economy, the following legislative acts aimed at protecting consumers and businesses from excessive fuel price increases entered into force in the final days of March:

• the Act of 27 March 2026 amending the Act on stocks of crude oil, petroleum products and natural gas and the rules of conduct in situations of threat to the state's fuel security and disruptions on the oil market, as well as the Act on the National Revenue Administration — the Act introduces a mechanism of maximum retail prices for liquid fuels applicable at petrol stations during the period in which reduced VAT rates on fuels apply;
• the Act of 27 March 2026 amending the Act on excise duty — the Act granted the Minister of Finance and Economy the power to reduce excise duty rates on motor fuels by way of regulation — for a specified period of time;
• the Regulation of the Minister of Finance and Economy of 28 March 2026 amending the regulation on reduced rates of value added tax — the regulation introduces, for a specified period until 30 April 2026, reduced rates of value added tax (VAT) for individual liquid fuels;
• the Regulation of the Minister of Finance and Economy of 28 March 2026 on the reduction of excise duty rates on certain motor fuels — the regulation introduces, for a specified period, reduced excise duty rates for individual liquid fuels.

Maximum Fuel Prices at Petrol Stations

During the period in which reduced VAT rates are in force, a mechanism of maximum retail prices for liquid fuels — i.e. motor gasolines and diesel fuels — sold at petrol stations has been introduced. This mechanism does not cover liquefied petroleum gas (LPG). Entities carrying out retail sales of fuels are required to apply prices not exceeding the designated limit.

The maximum price will be set as the sum of:

• the arithmetic average of the wholesale selling price of fuel per 1 dm³ on the territory of the Republic of Poland at a reference temperature of 15°C, determined on the basis of prices applied on the preceding business day by the five producers or traders with the largest share of the domestic fuel market, increased by excise duty and the fuel surcharge, and
• an amount to cover operational costs of PLN 0.30 per 1 litre of fuel.

The five largest participants in the fuel market are required to provide the minister responsible for energy commodity economy with information on the wholesale prices applied — each business day by 9:00 a.m. On this basis, the Minister announces, by way of a notice, the maximum price of liquid fuels, which applies from the day following its publication. The price announced on the business day preceding a Saturday, Sunday, public holiday or other day off work applies until and including the next business day following those days.

Offering liquid fuels at a price higher than the announced maximum price is strictly prohibited. A breach of the obligation to apply the maximum price is subject to a financial penalty of up to PLN 1,000,000. Furthermore, the amended provisions extend the scope of customs and fiscal audits to include verification of compliance with the obligation to apply the maximum liquid fuel price announced in the notice, as well as the prohibition on offering fuels at a price exceeding the maximum price.

Changes in Value Added Tax (VAT)

For the period from 31 March 2026 to 30 April 2026, the VAT rate has been reduced from 23% to 8% in respect of the following liquid fuels:

1. motor gasolines (CN 2710 12 45 or 2710 12 49) and products obtained by blending these gasolines with biocomponents;
2. diesel fuels (CN 2710 19 42, 2710 19 44 and 2710 20 11) and products obtained by blending these fuels with biocomponents;
3. biocomponents constituting standalone fuels, intended for use in internal combustion engines — regardless of CN code.

As in the case of the maximum price, the reduced VAT rates do not apply to liquefied petroleum gas (LPG).

Changes in Excise Duty

A provision was introduced into the Excise Duty Act empowering the Minister of Finance and Economy to reduce, by way of regulation, excise duty rates on motor fuels for a specified period, falling not later than 30 June 2026. On the basis of the above power, the Minister of Finance and Economy reduced the excise duty rates for the period from 30 March 2026 to 15 April 2026 to the following levels:

1. for motor gasolines with CN codes 2710 12 45 or 2710 12 49, and products obtained by blending these gasolines with biocomponents — from PLN 1,529 per 1,000 litres to PLN 1,239 per 1,000 litres;
2. for diesel fuels with CN codes 2710 19 43 and 2710 20 11, and products obtained by blending these fuels with biocomponents — from PLN 1,160 per 1,000 litres to PLN 880 per 1,000 litres;
3. for biocomponents constituting standalone fuels, intended for use in internal combustion engines, regardless of CN code — from PLN 1,160 per 1,000 litres to PLN 880 per 1,000 litres.

The above reduction did not cover liquefied petroleum gas (LPG).