Poland’s government has unveiled a fresh strategy to lower fuel prices, moving away from the controversial CPN package and towards market-based tools. With wholesale costs surging, drivers now face the real threat of petrol and diesel exceeding 7 zloty per liter. Energy Minister Miłosz Motyka insists a 'rynkowy’ (market-driven) approach is the answer.
The announcement comes just days after the CPN program officially ended on July 1. In its place, the government has begun exploring how to leverage market mechanisms to ease pressure at the pump. Wholesale prices have already jumped sharply – diesel rose by 11% since the start of July, while petrol 95 increased by 15 groszy per liter in the past week alone, according to data from Orlen.
Adding to the strain, the VAT rate on fuel was raised at the beginning of the month, further boosting the likelihood that pump prices will soon breach the psychological 7-zloty barrier. The government is walking a fine line between supporting consumers and not intervening directly in the market.
Market tools instead of direct intervention
– Today we are not talking about returning to the CPN package – said Minister of Energy Miłosz Motyka. – We are primarily talking about how to market-wise bring about lower fuel prices. What currently affects prices at the stations is the rebuilding of warehouse stocks and strategic reserves – he added.
Motyka clarified his earlier remarks about possible protective measures if tensions between the US and Iran escalate again. For now, however, the focus is on indirect methods – such as adjusting reserve policies or encouraging competition among fuel retailers – rather than direct price caps or tax cuts.
Why prices keep rising
A fuel price is composed of several elements: the cost of crude oil on global markets, refining margins, excise duty, VAT, and distributor margins. The government can influence taxes and duties but has little control over world oil prices or domestic refining costs. Since the CPN’s end, Orlen has lifted wholesale diesel by 26 groszy per liter and petrol by 15 groszy, pushing wholesale levels to their highest in over a month.
Global crude oil prices remain volatile, with the Brent benchmark hovering near $100 per barrel. Any further geopolitical shocks – particularly in the Middle East – could quickly undo whatever domestic measures Warsaw attempts. The minister acknowledged that the effectiveness of national policy is limited when global forces are at play.
Źródło: WNP.PL, Fot. Shutterstock/CatwalkPhotos
