Poland will impose a temporary 60% tax on fuel companies' extraordinary profits from 1 August 2026 through the end of the year, targeting windfall gains achieved by producers and traders of liquid fuels amid Middle East-driven energy turmoil. The measure, approved by the Council of Ministers, aims to recover several billion zloty (PLN) in government subsidies used to shield consumers and businesses from soaring oil prices.
Poland’s government has introduced emergency legislation targeting fuel companies that have reaped unusually large profits from Middle East-driven energy turmoil, according to a release on 16 June 2026.
The temporary windfall tax, set to take effect on 1 August 2026, aims to recoup some of the billions in subsidies the state has poured into keeping fuel prices affordable for consumers and businesses.
The trigger for this measure is the blockade of the Strait of Hormuz following conflict in the Middle East, which sent global oil prices surging. While ordinary citizens and businesses struggled with rising costs, some fuel-sector firms—particularly those engaged in production and international trading of liquid fuels—saw their margins balloon far beyond normal levels, not through better management or investment, but simply through supply shock windfall.
How the tax captures extraordinary profits
To identify excessive gains, the government will compare each company’s actual 2026 revenues against a calculated benchmark. That benchmark is based on their average profit margins from 2025, with an added 20% cushion. This buffer protects businesses from being taxed on profits resulting from legitimate market growth or normal annual fluctuations. Only profits exceeding this reference point face taxation at a 60% rate.
The tax applies throughout the period from 1 March to 31 December 2026 for enterprises holding licenses to trade fuels internationally.
Payment schedule and implementation
Companies will submit monthly advance payments calculated cumulatively. The first batch, covering March through July 2026, will be divided into four equal instalments payable between September and December 2026. The final annual settlement is due by 30 April 2027.
Why this matters
Poland has already spent several billion zloty (PLN) protecting households and firms through emergency fuel measures—slashing VAT on petrol and diesel to just 8% and cutting excise duties to EU-permitted minimums.
By implementing a windfall tax similar to those adopted across Europe during the post-Ukraine energy crisis, the government seeks to share the burden more equitably, ensuring that taxpayers don’t shoulder the entire cost while energy firms pocket record gains from the same market disruption.
