Reduced VAT on fuels will bring down petrol prices: official

photo: pap arch.

“The prices of diesel and petrol could fall to PLN 5 (EUR 1.10) per litre thanks to the government's decision to temporarily cut VAT on fuels by two-thirds,” Daniel Obajtek, the head of Poland’s biggest fuel company PKN Orlen, has said.

The government has already temporarily lowered the excise tax on fuel, which has brought prices at petrol stations down to PLN 5.70-5.80 (EUR 1.25-1.27) a litre from levels exceeding PLN 6.00 (EUR 1.32) per litre for standard fuels.

In his recent interview, Polish PM Mateusz Morawiecki said the government would lower VAT on fuels from 23 percent to 8 percent for six months, starting from February, which will cut fuel prices by PLN 0.60-0.70 per litre.

Daniel Obajtek assessed the government’s decision as “very good.”

Poles have been hit hard by rising inflation, which reached 8.6 percent in December, according to a flash estimate by the country's statistics office released on Friday.