Poland introduces windfall tax on fuel companies to cut prices by 20-30%
Poland's president has signed a law imposing a windfall tax on oil and fuel companies, aiming to lower fuel prices, while simultaneously asking the Constitutional Court to review the law's legality.
Poland has decided to take drastic steps to tackle high fuel prices by introducing a new windfall tax on oil and fuel processing companies. The law was signed by President Karol Nawrocki, even though he had previously rejected a similar proposal from the government. At the same time as signing it, the president asked the Constitutional Court to assess whether the new law complies with the country's constitution.
How the tax will work
The new tax will apply to companies involved in fuel production or processing. It will be applied retroactively, covering the period from March 2026 to March 2027. The government plans to use the funds raised specifically to reduce fuel prices for the public.
Additional measures
The tax is not the only step being taken — Poland will also cut value-added tax on fuel from 23% to 8%, lower the energy tax, and introduce a maximum price cap on fuel. All of these measures take effect on October 3 and are currently planned to remain in place until the end of the year.
According to government estimates, the combined effect of these measures could reduce the price of petrol and diesel by roughly 23 to 30 cents per liter.
Political reaction
The decision has sparked political debate in Poland, but the government stresses that its main goal is to ease the burden of fuel prices on citizens. A similar windfall tax is also being discussed in Germany, though opinions there are notably divided on the issue.
