VAT on fuel returned. Obaitek: This will not affect prices

From January 1, the anti-inflationary shield, which introduced a reduced VAT rate on gas, electricity, system heat and fuel.

– The VAT refund should not significantly affect fuel prices at filling stations. We will do our best to keep prices at the current level,” said Daniel Obaitek, president of PKN Orlen, on TVP.

He assured that the situation on the oil market is stable, and the price of a barrel is relatively low. The merger between Orlen and Lotos will also help bring prices down, President Obaitek said.

“We have a stable supply of crude oil, we have received a synergy that was very necessary,” Obaitek said and advised clients not to buy fuel in reserve.

VAT returned

Introduced at the beginning of the year, the so-called anti-inflation shields were to be applied for a certain period of time. After several months of validity, they were extended until the end of 2022 unchanged. Due to the fact that since the introduction of these decisions, inflation has tripled, the government decided to extend it again, but only partially: VAT on food will be reduced for the next six months, but VAT on fuel and gas will return to 23%.

Tariffs for system heat consumed by residents of apartment buildings and electricity will also return to baseline levels. A kind of compensation will be the freezing of electricity prices, but only up to an annual limit of 2000 kWh (2600 kWh for large cardholders, 3000 kWh for families with disabilities). Once the recipient exceeds this threshold, the operator will apply the regular price.

Zero VAT on food will apply until June 30, 2023.

Zero excise

On December 21, President Andrzej Duda signed a law extending the exemption from excise tax on the retail sale of gasoline, diesel fuel, biocomponents that make up their own fuel, and gases intended to drive internal combustion engines.

This means that despite the fact that, due to the objections of the European Commission, the current VAT rate will return, the excise tax, for which the government is directly responsible, will still be frozen and will not be added to the price of fuel. It can be assumed that due to this, the increase in fuel prices at gas stations from January 1 will not be so noticeable.