A regulation lowering excise duty on gasoline and diesel came into force in Poland on Monday, while a notice setting maximum fuel prices at gas stations was due to be published later in the day, with the new prices taking effect on Tuesday.
The regulation, published on Saturday by the finance and economy minister, cuts excise tax on gasoline to PLN 1,239 (EUR 289) per 1,000 liters through April 15, and on diesel and bio-components used as standalone fuels to PLN 880 (EUR 205) per 1,000 liters.
The measure was issued under an amendment to the excise tax law that took effect on Sunday and allows temporary fuel excise cuts by regulation through June 30.
A separate amendment that also came into force on Sunday changed the law on crude oil reserves and introduced a mechanism for calculating maximum fuel prices at gas stations.
Under the new rules, during the period of reduced VAT rates starting March 31, fuel retailers will be required to keep prices at or below the maximum level.
Energy Minister Miłosz Motyka told Poland's PAP news agency on Saturday that the notice on maximum fuel prices would be published on Monday and that station prices would change no earlier than Tuesday, partly because of technical issues such as adjusting cash registers.
Sales above the maximum price will be punishable by fines of up to PLN 1 million (EUR 233,300), with enforcement carried out by the National Revenue Administration.
The maximum price will be set under a formula based on the average wholesale fuel price on the domestic market, plus excise duty, the fuel fee, a retail margin of PLN 0.30 (EUR 0.07) per liter and VAT.
A separate regulation published on Saturday also cut VAT on fuel to 8 percent from March 31 to April 30. That regulation takes effect on Tuesday.
Prime Minister Donald Tusk said the package was meant to reduce prices at gas stations. He also said a windfall tax could be introduced if fuel companies were found to be making excessive profits.
According to finance ministry estimates, the excise cut will cost the government PLN 700 million (EUR 163 million) a month, while the VAT cut will cost PLN 900 million (EUR 210 million) a month.
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Source: PAP