Poland ends fuel‑price subsidy program, gasoline prices rise

On 1 July 2026 Poland terminated the temporary “Ceny Paliwa Niżej” (CPN) programme that had reduced VAT on fuel to 8 % and capped prices. The repeal restored the standard 23 % VAT and normal excise rates, causing gasoline prices to climb to about 6.8 zł per litre and diesel to roughly 7.0 zł per litre – an increase of 0.8‑1 zł per litre compared with the previous day.

The government estimates the three‑month programme cost around 5 billion zł and plans to recover roughly 4 billion zł through a temporary windfall tax on fuel‑company profits. Analysts expect the price rise to add 30‑60 gr / l to pump prices.

Fuel price inflation is expected to have a limited effect on overall consumer inflation, which remains near the 2.5 % target, because food prices are falling and seasonal factors are offsetting the fuel increase.

Former Prime Minister Mateusz Morawiecki criticised the decision, calling the end of the subsidy a “present” that the ruling party gave to families while “patching a budget hole”. Finance Minister Andrzej Domański warned that price changes would vary by station but could average 30‑40 gr / l.