Poland Cuts VAT and Excise to Tackle High Fuel Costs

26 March 2026 Poland Radar 0 Comments

Poland cuts VAT and excise to lower fuel prices after Middle East shocks. Expect about PLN 1.2 off per litre.

Poland’s government moved on Sunday to cut VAT and excise on petrol and diesel to ease high pump pain and lower fuel prices for motorists. The measures respond to a supply shock after military action in the Middle East pushed global oil costs higher.

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How the fuel prices change and what to expect

The prime minister announced a cut of VAT from 23% to 8%. In addition, the government cut excise by 29 groszy on petrol and 28 groszy on diesel. Consequently, officials expect roughly a 1.20 PLN fall per litre at the pump. However, the final retail price depends on how quickly stations pass the cuts to drivers.

Why the government acted

Global tensions raised crude prices. As a result, Polish wholesale costs rose and retailers hiked prices. Moreover, diesel topped 8 PLN per litre in many places. Petrol passed 7 PLN, too. Therefore the government chose fiscal relief to blunt the squeeze on households and firms.

In addition, officials set new controls to prevent profiteering. The energy minister will set daily maximum retail prices. Moreover, the government promised a windfall tax on extraordinary margins. Consequently, they hope to stop fuel companies from keeping prices high despite lower tax burdens.

Border effects, supply and demand

Poland will not limit sales by car registration at first. Therefore foreign drivers can buy at the new, cheaper rates. However, neighbouring countries like Hungary limited cheaper fuel to local plates. Consequently, Poland may see queues at border stations, especially near Germany. The prime minister said authorities will act if cross-border fuel tourism becomes a real problem.

Importantly, Poland holds healthy fuel stocks. Therefore officials expect no distribution shocks. Moreover, they stressed that reserves and logistics keep national supplies stable. In short, shortages should not occur, even if demand jumps at border pumps.

💡 GOOD TO KNOW: Foreign residents can buy fuel in Poland without special local documents. However, expect long lines at border stations if many drivers cross for cheaper fuel. In Poland you will hear references to ZUS (social insurance), NFZ (public health insurer), PESEL (national ID number), and mandat (traffic fine). You do not need a PESEL or ZUS number to fill your tank, but you may need local plates or a PESEL for some price-restricted programs in other countries. Use mobile apps to compare prices and pay by card or contactless. Also keep receipts if you need to claim travel or business expenses.

For expats, the immediate impact is fiscal. Lower VAT means cheaper costs for commuting and deliveries. Moreover, firms that rely on road transport will see lower operating costs. Therefore households may feel relief in the fuel bill, and businesses may pass savings to customers.

Finally, watch local news and fuel apps for daily price caps announced by the energy minister. Moreover, monitor queues near borders if you plan cross-border trips. The government pledged to intervene further if markets fail to pass on tax cuts fairly. Therefore drivers should see cheaper pumps in the coming days.

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