“I think we are all pleased that we have this ceasefire; the markets reacted positively,” Finance and Economy Minister Andrzej Domański told broadcaster Polsat News.
“The declines we are seeing on the markets will translate into prices at fuel stations, but that will take a few days, because first the oil price falls, then the wholesale price, and then prices at fuel stations,” he said.
US President Donald Trump said late on Tuesday he had agreed to a Pakistani proposal for a two-week ceasefire on condition that Iran immediately reopen the Strait of Hormuz. He also said peace talks with Iran had made significant progress.
On Wednesday, US crude fell by more than 16 percent to just under USD 94 a barrel, while Brent crude dropped nearly 16 percent to a little over USD 92, Polish state news agency PAP reported.
Domański said declines were visible not only in crude prices but also in refined products, including diesel fuel.
Asked about the future of the government’s fuel-price relief program, Domański said ministers would review whether temporary tax cuts should be extended.
“We will discuss the situation within the government. We know that the regulations lowering VAT and excise are temporary in nature and we will analyze the situation as to whether the dates of the regulations should be extended,” he said.
The regulation cutting VAT on fuel from 23 percent to 8 percent runs through April 30, while the excise tax cut remains in force until April 15.
Domański also said work was under way on legislation to introduce a windfall tax tied to excess profits arising from the war.
“If there are excess profits, there will be a tax on them,” he said. “This month, solutions will definitely be ready.”
The government’s temporary Pump Prices Down (CPN) package also introduced maximum prices for gasoline and diesel fuel, announced daily by the energy minister.
(jh/gs)
Source: PAP