Polish fuel prices surge 78-91 grosz/liter as CPN subsidy expires

The end of the government's price cap removes a key buffer for consumers, with analysts pointing to VAT mechanics and currency weakness as compounding factors.

By Handelsavisen Newsroom · Automated 2026-07-02 18:22 UTC · 1 min read Last updated: 2026-07-02 20:45 UTC

Fuel prices at Polish service stations have risen by 78 to 91 grosz per liter following the expiration of the government's "Lower Fuel Prices" (CPN) support package.

The sharp increase reflects not only the return to standard market pricing but also broader macroeconomic pressures, according to Urszula Cieślak, an analyst at Reflex.

Prior to the expiration, Handelsavisen reported that prices were expected to climb by 40 to 60 grosz per liter.

The removal of the subsidy eliminates a critical buffer that had kept pump prices artificially low for consumers.

Cieślak noted that the price jump is driven by a combination of factors, including the reapplication of standard VAT rates, the weakness of the zloty, and movements in the global crude oil market.

Prior to the expiration, Handelsavisen reported that prices were expected to climb by 40 to 60 grosz per liter.

The actual increase has exceeded these initial estimates, suggesting that market dynamics and currency fluctuations have accelerated the repricing process.