Poland starts limiting fuel prices from Tuesday
Poland will apply a fuel price cap for the first time from Tuesday to protect consumers from the impact of soaring global oil prices, the country's energy minister said on Monday. He was quoted by the portal „TVP World“.
According to the minister's announcement on Monday, the maximum price of 95-brand petrol will be 6.16 zlotys (1.55 euros) per litre, while the price of diesel fuel will be 7.60 zlotys (1.91 euros) per litre.
The price of higher-quality petrol 98 will be capped at 6.76 zlotys (1.70 euro) per litre.
„TVP World“ explains that if Warsaw imposes a nationwide state of emergency, the energy minister will set the price cap on a daily basis.
The Polish Ministry of Finance estimates that this artificial price cap will cost the budget around 700 million zlotys (€162 million) per month.
Retailers who sell fuel above the maximum price can face fines of up to PLN 1 million (€250,000).
In order to ease the economic burden on consumers as a result of the chaos on global energy markets, the Polish government is also reducing VAT on fuel from 23% to 8% and excise duties to the minimum set by European Union (EU) rules from 31 March.
The reduction in VAT on fuel will cost Poland around 900 million zlotys (209 million euros) a month, adds „TVP World“.
ELTA recalls that after Israel and the US began bombing Iran on 28 February, killing the Islamic Republic's supreme leader, Tehran responded with missile and drone strikes against Israel and US allies in the Gulf region and against ships in the Strait of Hormuz.
The Strait of Hormuz, which connects the Persian Gulf with the rest of the world's oceans, has traditionally carried around one fifth of the world's gas and oil. Iran's attacks on commercial ships and threats of new strikes have made it virtually impossible for any tanker to transport oil, gas and other goods through the Strait. As a result, oil prices have risen sharply, and experts and governments around the world fear possible inflation.
