President Nawrocki Signs Windfall Tax on Fuel Companies After Months of Standoff
Poland's president finally approved a temporary windfall tax on fuel companies on October 1, reversing his earlier rejection and ending a protracted dispute with the government. The 60% levy on excess profits is expected to reduce fuel prices by 1.2-1.3 zloty per liter.
After months of deadlock between the government and presidency, President Karol Nawrocki signed into law a windfall tax on fuel companies on October 1, 2026, finally breaking a political stalemate that has preoccupied Polish policymakers since March.
The Long Road to Approval
Nawrocki had twice rejected the bill—first in July 2025 when he referred it to the Constitutional Tribunal, citing constitutional concerns about the retroactive application of the tax. Prime Minister Donald Tusk reintroduced the bill in September, and after parliamentary approval, Nawrocki ultimately relented and signed it into law, though with reservations.
"I will not allow the government to dodge responsibility any longer," Nawrocki stated in a televised address. He simultaneously referred the law to the Constitutional Tribunal for formal review, signalling his continuing doubts about its constitutionality even as he allowed it to take effect.
How It Works
Fuel producers will face a 60-percent tax on revenues above a benchmark based on their normal margins. The windfall tax levies a one-off charge of 60% of excess profits from liquid fuel sales, calculated as the amount that would have been generated using a company's average 2025 fuel sales margin, increased by 20%. The tax covers the period from March 1, 2026, to March 31, 2027.
It is expected to raise around 4 billion zloty (€914 million). Polish Finance Minister Andrzej Domanski said pump prices should fall by an estimated 1.2 to 1.3 zlotys (about 0.31 to 0.33 U.S. dollars) per liter this weekend.
Why This Matters
Rising fuel prices have become a major source of inflationary pressure in Poland. Consumer inflation accelerated to 4 percent in September from 3.4 percent in August, while fuel prices surged 36.1 percent year-on-year. The government has already spent approximately 4.7 billion zloty on temporary price-relief measures earlier in the year.
Following the signing, the Polish government announced a reduction in the VAT rate on fuel from 23% to 8% and a cut in excise duty. The measures will remain in force until 31 December.
For Foreigners in Poland
If you commute, own a car, or rely on petrol for any regular activity, expect fuel prices to drop noticeably within days—potentially by 1.2–1.3 zloty per liter—as the government finally implements relief measures after three months of political gridlock. Monitor petrol station prices over the coming weekend to see the real-world impact on your household budget.
Sources
Independent app, not a government. General information, not advice. The official source:
