Poland cuts fuel VAT

Poland has announced a temporary cut in fuel VAT to ease inflation pressures linked to rising oil prices and the ongoing Iran conflict.

On 26 March 2026, Prime Minister Donald Tusk confirmed a reduction in VAT on fuel from 21% to 8%. Parliament approved the measure on 30 March, with implementation set for 6 April to 30 April 2026. Fuel duties will also be lowered to the minimum allowed under EU rules.

Oil prices have surged past $100 per barrel, driving up pump costs across the EU, where taxes make up more than half of fuel prices. The government has signaled that “all options are on the table” if prices continue to rise, including possible windfall taxes on energy companies.

Poland has already taken steps to shield consumers, including:

• Fuel price caps

• Margin restrictions

• Discounts through state-linked energy firms

Officials say further intervention remains possible if market conditions fail to stabilise.