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Polish senators back bid to bring down fuel prices as Iran war drags on

27.03.2026 15:45
Polish senators on Friday approved a package of bills aimed at cutting fuel taxes in response to price surges linked to the United States’ and Israel’s war with Iran.
The upper house of Polands parliament, the Senate, in session in Warsaw on Friday, March 27, 2026.
The upper house of Poland's parliament, the Senate, in session in Warsaw on Friday, March 27, 2026.Photo: PAP/Leszek Szymański

The measureswhich passed overwhelmingly in the Senate, the upper house of parliament, now go to President Karol Nawrocki for signature.

If enacted, the legislation would allow for reductions in value-added tax and excise duties on fuel to curb price increases driven by the conflict in the Middle East, officials said.

The package, adopted by the government on Thursday, was fast-tracked through parliament, with Prime Minister Donald Tusk expressing hope it could be signed into law quickly so it can take effect before Easter.

Earlier on Friday, the measures were also overwhelmingly approved by the lower house, the Sejm, with most opposition lawmakers voting in favour.

The legislation provides for cutting VAT on fuels from 23 percent to 8 percent and lowering excise tax to the minimum level allowed under European Union rules.

The government says the move could reduce pump prices by about PLN 1.20 (around EUR 0.30) per litre.

Tusk told reporters on Thursday that the government would introduce temporary maximum fuel prices, to be set daily by the energy minister, to ensure the tax cuts translate into lower costs for consumers.

"We have developed a mechanism to ensure that these reductions have a real impact on prices," he said, adding that fuel retailers would be required to pass on the savings to customers.

The measures are also intended to prevent excessive profits by fuel companies during a period of high oil prices, according to Tusk.

He said the government does not currently plan to introduce limits on fuel sales, but warned it could act if lower prices trigger "fuel tourism" by foreign drivers.

"If it turns out that fuel tourism reaches a disturbing scale, we will react," Tusk said.

He added that the government could introduce a windfall tax if it finds that fuel companies are making excessive profits as a result of rising oil prices.

Earlier this month, Tusk said Poland faces no risk of fuel shortages despite the Middle East conflict.

(gs)

Source: IAR, PAP, TVP Info