On Tuesday, Prime Minister Mateusz Morawiecki visited Zagreb, where he met with the head of the Croatian government, Andrej Plenkovic. At the press conference after the meeting, journalists asked the Prime Minister of the Polish government if he was planning to introduce solutions that would lower fuel prices. For example, following the example of Hungary, where maximum fuel prices were set at the stations in order to fight inflation.
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“We will implement several such solutions together with our anti-inflationary package, which will lead to a relative reduction in prices at petrol stations. However, we will not do it, for the moment, certainly by imposing a maximum price” – Prime Minister Morawiecki replied.
So how does the Polish government want to lower fuel prices? The Prime Minister added that there will be a reduction in “certain components of the fuel price”.
“These will be moves that will cost the budget a lot of money, even over a billion zlotys, but we do not want to do it by imposing administrative restrictions, but by reducing certain components of the fuel price” – announced the Prime Minister.
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What are “contributory components” in the fuel price?
How much we pay when refueling at a petrol station is influenced by:
– VAT rate,
– excise duty,
– fuel surcharge,
– fuel station margin.
These 4 factors are responsible for 50.5 percent. the price of a liter of gasoline. This means that if it were not for these burdens, drivers would pay 3.03 zlotys instead of 6 zlotys when refueling, for example, with a liter of Pb95.
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The government is unlikely to be able to influence the margins of petrol stations, so it has a choice of lowering VAT, excise duty or the fuel surcharge. The fuel surcharge is pennies, the government would have the greatest scope for action by reducing excise duty and VAT, these are the largest items.