Poland Extends Fuel Price Cut, Plans Windfall Tax on Oil Companies

On 13 May 2026 Finance Minister Andrzej Domański announced the extension of the "Ceny Paliw Niżej" programme, keeping the reduced VAT on fuel at 8 % and lowering excise duties until the end of May. The subsidies aim to protect drivers amid volatile crude‑oil prices and geopolitical tension around Iran and the Strait of Hormuz, but EU officials warn that Poland is "bending EU rules" by maintaining some of the lowest fuel taxes in Europe.

Within a week the government will present details of a windfall tax on the excess profits of fuel firms. Analysts estimate the levy could generate more than 4 billion złoty, with state‑controlled refiner Orlen among the likely targets. The tax is intended to compensate for budget shortfalls caused by the fuel‑price subsidies and to capture profits earned from high international oil prices.