Finance minister says oil price falls will lower fuel prices in Poland
"I think we are all pleased that we have this ceasefire. The markets have reacted positively," Domanski told private broadcaster Polsat News, referring to the newly announced Middle-East ceasefire proposal. The plan, which would form a basis for further negotiations, involves suspending the US-Iran hostilities for two-weeks on condition Iran immediately reopens the Strait of Hormuz, which is vital for global crude oil trade.
"The declines we are seeing on the markets will translate into prices at petrol stations, but this will take a few days, because first the price of oil falls, then wholesale prices, and only then prices at petrol stations," he added.
On Wednesday, the price of WTI crude fell by more than 16 percent to just under USD 94 per barrel, while Brent crude dropped by nearly 16 percent to just over USD 92.
Domanski said that, alongside falling oil prices, declines in the prices of refined products, including diesel, are also visible.
Asked about the future of the government programme aimed at lowering fuel prices amid the global oil price surge caused by the Middle East conflict, Domanski said: "We will discuss the situation within the government. We know that the regulations lowering VAT and excise duty are temporary in nature and we will analyse the situation to decide whether the validity of the regulations should be extended."
The regulation lowering VAT on fuel from 23 to 8 percent is in force until April 30, while the regulation lowering excise duty applies until April 15.
"If there are excess profits, they will be taxed," Domanski said when asked about a possible tax on windfall profits linked to the situation in the Middle East, adding that work on relevant legislation is ongoing and that "solutions will certainly be ready this month."
The government's "Lower Fuel Prices" (CPN) package is temporary and includes maximum prices for petrol and diesel announced daily by the energy minister.
Energy Minister Milosz Motyka said later on Wednesday that fuel prices could fall in the coming days if current market trends continue and the situation in the Middle East does not escalate further.
"I think that in the coming days, at the beginning of next week, if this trend continues and there is no further escalation, wholesale prices should fall and prices at petrol stations as well," Motyka said.
"As for diesel prices, I think this will be a level seen before the introduction of this package," he said, adding that it would mean a drop of less than one zloty.
"If within two weeks the situation stabilises and a lasting ceasefire is reached, we will then observe the situation on the markets. If it continues to calm and trends in diesel prices are downward, we will be able to speak about lower prices at stations without the CPN package," Motyka said.
Also on Wednesday, Prime Minister Donald Tusk said the government will not abandon the CPN package despite the ceasefire in the Middle East and will continue to act cautiously.
"We do not intend to abandon this mechanism we have introduced, because we will err on the side of caution," Tusk said.
"I think that from Friday, the positive effects of the ceasefire will be felt at Polish petrol stations," he added. (PAP)
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