Poland introduces excess profits tax for oil companies to reduce fuel prices

In order to reduce the price of petrol and diesel, Poland is introducing an excess profits tax for petroleum companies. President Karol Nawrocki said in a speech on Thursday evening that he had signed a corresponding legislative project. "Every zloty collected thanks to this law must be spent on reducing fuel prices."

The center-left government of Prime Minister Donald Tusk wants to use the revenue from the excess profits tax to finance a new edition of the fuel price package. Finance Minister Andrzej Domanski expects fuel prices to fall by the equivalent of 23 cents per liter by the end of this week. In Poland, premium gasoline currently costs an average of 2.05 euros per liter and diesel 2.06 euros per liter.

The first attempt was vetoed

There had been political wrangling between the government and the right-wing conservative president in Poland over the law introducing the excess profits tax. Nawrocki vetoed the government's first attempt in the summer. Under public pressure, he signed the law, but at the same time commissioned the Constitutional Court to review it.

An excess profits tax has also been discussed in Germany for months. Chancellor Friedrich Merz and Economics Minister Katherina Reiche (both CDU) reject it, while Vice Chancellor Lars Klingbeil's SPD is in favor. An initiative by the finance minister at EU level was initially rejected by EU Economic Commissioner Valdis Dombrovskis. Lower Saxony's Prime Minister Olaf Lies (SPD) called for the tax to be introduced nationally if necessary.