Experts have calculated precisely how much they are expected to cost after the introduction of the CPN package. Easter gift is simply a violation of EU law

The Polish government announced a simplification in the taxation burden on motor fuels due to advanced prices at stations. However, not all actions are easy to carry out. Unless there is simply a problem with the simplification of excise duties, the simplification of the VAT rate on its own may violate EU law. However, if changes can be made, experts have already calculated how much diesel, petrol and LPG will cost.

Why can't Poland just cut VAT on fuel?

In the associate States of the European Union VAT is regulated by a peculiar VAT Directive. It shall find to which products or services lower than the basic rates in the country may be applied. The lower VAT applies, among others, to food. However, energy products, including fuel, are not included in the peculiar catalogue of goods for reduced rates.

This means that Poland cannot reduce VAT on fuel itself. This is of course possible, but it requires a transition first appropriate path in EU institutions. Firstly, the government must make a request to the European Commission, and this change must measure whether it will distort competition on the Community market. The final decision is taken by the EU Council, which is all associate States. If this institution gives the green light, then it is only then that a associate State can change VAT in national law.

Minister @Domanski_Andrz

We reduce VAT on fuels from 23% to 8%, reduce excise work to minimum permissible levels – these actions should bring lower fuel prices by about PLN 1.20 per litre.#Prices of Fuels belowpic.twitter.com/Rx8b076ZAG

— Prime Minister's Office (@PremierRP) March 26, 2026

At this point, it is unclear whether the Polish government has initiated specified a procedure. RMF FM station contacted KE spokesperson on the case, but this 1 refused to comment on plans communicated by Donald Tusk until the changes entered into force. This, erstwhile it actually happens, depends, among others, on the adoption by the Sejm and then the signature of the bill by president Karol Nawrocki. There will be no conflict on the government-president line in this case.

How much can diesel, petrol and LPG cost after taxation cuts?

If government CPN package (‘The Fuel Under Price’) will be passed on Friday, then the prices at the stations may fall even after the weekend. Experts e-petrol.pl already They calculated, how much is the average cost of individual popular types fuel At the stations.

photo. freepik.com

The average price of 95 octane petrol (currently 7.14 PLN/l) will fall to the scope of 5.99-6.19 PLN/l.) utilizing the announced taxation credits. Its 98-octane variety alternatively of 7.89, PLN/l is expected to cost an average of 6.59-6.79 PLN. On the another hand, diesel, presently costing 8.69 PLN/l on average, is to be offered for 7.39-7.60 PLN/l. The increases are to be seen only in the case of autogas (currently PLN 3.64/l) which is to cost PLN 3.73-3.86/l.

What does the government's CPN Package contain?

• VAT simplification on fuel from 23 to 8 percent.
• tax simplification to a minimum (-29 grams per petrol, -28 grams per diesel)
• introduction of a maximum price (established by the Minister of Energy on the basis of current wholesale prices)
• solutions are intended to let dynamic adjustment of taxation burden to guarantee fuel prices are stable