WARSAW, April 17 (Reuters) – Poland will keep measures capping fuel prices in place for as long as needed and will start phasing them out gradually only when wholesale prices start falling steadily, Polish Energy Minister Milosz Motyka said on Friday.
Poland announced late last month that it was cutting taxes on fuel and capping prices at the pump to mitigate the effects of the war in the Middle East. It estimated that the measures would reduce budget revenue by 1.6 billion zlotys per month.
“We have the lowest prices in Europe and guaranteed security of supply, but we are cautious about the risks and predictions about conflict in the Middle East. These mechanisms will remain in place as long as needed,” Motyka said.
He added that the measures would be abolished gradually.
The U.S.-Israeli war with Iran has created the largest-ever disruption to global oil and gas supplies due to Iran’s blocking of traffic through the Strait of Hormuz, which typically carries about 20% of the world’s oil and liquefied natural gas flows.
European airlines have warned of jet fuel shortages within weeks. Polish deputy energy minister Wojciech Wrochna said Poland has not released any jet fuel from reserves so far.
“There is no risk of a shortage of jet fuel, but the situation in Europe is difficult, and the international situation will show what will happen next,” Motyka said, adding that jet supplies were secured for the coming weeks.
(Reporting by Marek Strzelecki; Writing by Anna Koper; Editing by Philippa Fletcher)