The Polish government has said that new legislation to reduce fuel prices will take effect on Tuesday, as it tries to reduce the impact on consumers of increased global oil prices due to the Iran war.

The Energy Ministry is still gathering data from wholesalers in order to set the maximum permitted price on this basis, Deputy Energy Minister Wojciech Wrochna told the radio station Rmf.fm.

“The maximum price, which all suppliers must adhere to, is set to come into force on Tuesday morning.” The government expects prices for petrol and diesel to fall by the equivalent of 28 cents ($0.33) per litre, he said.

The legislation, only signed into law on Friday, provides for a reduction in VAT on fuels from the current 23% to 8%. In addition, the energy minister will be able to reduce the level of the energy tax on fuel until the end of June.

The government had already announced a reduction to the minimum permitted under EU law for petrol and diesel, which comes to just under 7 cents per litre.

A maximum retail price for fuel is to apply in future. That price will be set daily by the energy minister on the basis of average wholesale prices and the operating costs of the largest suppliers. Violations can be punished with fines of up to the equivalent of €230,000.