Poland Slaps 60% Windfall Tax on Energy Firms Amid Middle East Price Hikes

Polish President Karol Nawrocki has signed a government bill introducing a windfall tax on energy companies in Poland. The new law aims to curb high profits made by oil and gas companies due to price rises caused by the conflict in the Middle East.

The tax will apply to revenue from fuel sales exceeding last year's average by 20 percent, which will be subject to a 60 percent tax. Finance Minister Andrzej Domański estimates that prices at petrol stations should fall by 1.2 to 1.3 zlotys (approximately six to seven Czech crowns) per liter as early as this weekend.

The Polish Prime Minister, Donald Tusk, stated that the proceeds from the tax would be used to lower prices at petrol stations. President Nawrocki emphasized the need for immediate action, saying 'Prices at petrol stations must be lowered immediately.' He also clarified that every zloty raised under this law must be used to lower prices.

The conflict in the Middle East has led to a sharp rise in fuel prices worldwide, resulting in high profits for oil companies. In response, the Czech government reinstated fuel price regulation on October 1, setting maximum petrol and diesel prices daily based on the average exchange price and a regulated retailer margin of CZK 2.50 per liter of fuel.