Poland Cuts Fuel VAT to 8% and Caps Daily Prices From 17 to 31 August

Poland Cuts Fuel VAT to 8% and Caps Daily Prices From 17 to 31 August

Poland is reinstating strict fuel price controls for the final two weeks of August. Prime Minister Donald Tusk announced on Thursday that the government will cut fuel VAT from 23% to 8% and set daily maximum prices from 17 to 31 August, reviving a large part of the CPN fuel price reduction programme.

A VAT cut to push pump prices down

According to the Polish government, the VAT reduction should lower fuel prices by roughly 0.90 to over 1 zloty per litre, around 0.20 to 0.27 euro, depending on the type of petrol or diesel. Poland's Energy Minister will be in charge of setting the daily price caps for the two-week period.

A measure already used in March, lifted in June

This is not the first time Warsaw has used this type of measure. Poland first capped fuel prices in March 2026, in response to the surge in energy prices triggered by the conflict involving the United States, Israel and Iran. The government lifted the restrictions at the end of June as tensions in the Middle East eased and oil and gas prices stabilised. Fuel prices have climbed again in recent weeks as the conflict continues, prompting Warsaw to reactivate the mechanism, even though current levels remain below the peaks seen at the height of the crisis.

What about France?

Unlike Poland, France has no administrative price-capping mechanism for fuel: pump prices move freely according to Brent crude prices and taxation (TICPE, 20% VAT). To track fuel price trends in France and compare them with other European countries, see our European fuel price comparison and our detailed French price statistics.

Frequently asked questions

Why is Poland capping fuel prices again?

The Polish government is responding to the rise in fuel prices seen in recent weeks, linked to the ongoing conflict involving the United States, Israel and Iran. The measure revives the CPN price reduction programme first used in March 2026.

How much will Poland's fuel VAT drop?

Fuel VAT drops from 23% to 8% from 17 to 31 August, which should lower pump prices by an estimated 0.90 to over 1 zloty per litre, around 0.20 to 0.27 euro.

How long will the price cap last?

The daily maximum prices, set by the Energy Minister, apply from 17 to 31 August 2026, covering the final two weeks of the month.

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