Poland Plans Tax on Oil Companies' Windfall Profits to Lower Fuel Prices

The Polish government intends to reintroduce a bill on a tax on the extraordinary profits of oil companies. The funds from the tax will be used to reduce fuel prices. Previously, the bill was rejected by Polish President Karol Nawrocki and sent to the Constitutional Tribunal, which has yet to make a decision. The government has resumed work on the document and plans to approve it at a meeting on September 15, after which it will be sent back to parliament. Polish Prime Minister Donald Tusk stated that if the law is signed by the president, another option for lowering fuel prices will be introduced. In March, the government launched a program to cap fuel prices, which ended in July and cost the budget 4.7 billion zlotys (about 1.08 billion euros). Rising prices in global markets due to the war in Iran have increased fuel costs and affected the revenues of oil companies. For example, Polish company Orlen saw its revenue increase by nearly 26% year-on-year in the second quarter, while its LIFO EBITDA operating profit rose by more than 54%. More expensive fuel has intensified inflationary pressure and increased costs for consumers and the transport sector.