Tusk announces cheaper fuel. This is how much drivers will save

During Thursday’s press conference, Prime Minister Donald Tusk announced that the government will adopt a package called “CPN” – “Fuel Prices Lower”. It is a package of decisions that are intended to ensure that “fuel prices are the lowest possible.”

Fuel prices down

The effect of the Prime Minister’s announcement is to reduce the VAT rate on fuels from 23%. at 8 percent, as well as a reduction in excise duty by PLN 0.28 on diesel oil and PLN 0.29 on gasoline.

– We decided to take action, fully aware that to a decisive extent the situation on the fuel market in the world and in Poland will depend on what is happening in this war, in the Middle East. Today, at an extraordinary meeting, we will make a whole package of decisions so that, in a situation that we have no control over there, in Iran and the Middle East, we can have the maximum influence on what is possible, what is within our reach here in Poland, to keep fuel prices as low as possible in the situation of a dramatic increase in fuel prices in the world, said the head of government.

What will be the effect of adopting the “CPN” package?

If the reductions announced by the Prime Minister come into force, Poles will definitely feel changes in their wallets.

– These are solutions that will first be visible on the receipt, but their impact on entrepreneurs requires a broader look – notes Piotr Juszczyk, Chief Tax Advisor at inFakt.

The expert gives the example of a bakery owner who uses a delivery vehicle only for business purposes and has the full right to deduct VAT on fuel.

– If you spend PLN 1,000 net on fuel per month, then at a rate of 23 percent pays PLN 1,230 gross and deducts PLN 230 VAT. After a reduction to 8%. will pay PLN 1,080 gross and will deduct PLN 80 VAT. Next, the entrepreneur’s real cost will be PLN 1,000. For him, the most important thing is the net price of fuel, which changes mainly due to excise duty and market conditions. The package will also include a drop in the price of excise duty, which will mean a cost reduction of approximately PLN 50 in our example. This means that the entrepreneur will pay approximately PLN 950 net, Juszczyk enumerates.

Maximum fuel price

The expert explains that in order for gas stations not to increase their margins, and therefore not to increase the net price, there should also be security in the form of a maximum fuel price.

– We certainly remember how, during the fuel anti-inflation shield, after the VAT rate returned from 8%. at 23 percent they cost the same. This meant one thing: the margin on fuel was higher at a reduced VAT rate. So, paradoxically, entrepreneurs incurred higher costs than after the VAT increase, reminds Juszczyk.

What will drivers gain?

The expert indicates that, in general, the reduction in the VAT and excise tax rates for entrepreneurs who settle VAT in full will not be as noticeable as for consumers.

– However, they will gain in liquidity, a lower gross amount when refueling means a smaller one-time cash burden. This may be important for large-scale operations, e.g. in transport. To sum up, it will be a direct and noticeable saving for households. For entrepreneurs, the tax effect remains largely neutral, and the real benefit depends primarily on the reduction in excise duty and the impact of regulations on net fuel prices, Juszczyk states.