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Poland ends fuel price caps, households feel the pinch at the pump

Poland's withdrawal of fuel price caps and tax relief has pushed pump prices to market levels, squeezing households as global crude markets remain volatile.

Poland has allowed fuel prices to return to market levels after the government ended its "cheap fuel" scheme, including price caps and tax relief, from September 1. The move has left motorists facing steadily rising costs at filling stations across the country.

Residents say the change is already reshaping daily routines and household budgets. One driver, Agnieszka, said fuel costs had been climbing for weeks, forcing people to work longer hours to keep up. She noted that food and housing costs were rising as well, and that she now usually cycles because running a car has become too expensive.

Higher fuel bills feed directly into transport costs and, from there, into the prices of other goods. The government is weighing fresh measures to contain the increase.

Economists caution, however, that domestic policy has limited room to counter global supply shocks. Blazej Podgorski, an economist, pointed to two conflicts — the war in Ukraine and the war involving Iran — as the dominant forces pushing oil prices higher. He said those factors outweigh other influences on the market, and warned that in a worst-case scenario Poland could see pump prices approaching levels seen in Italy and other parts of Europe.

As the cost of driving rises, some commuters are leaning more on public transport, with buses carrying passengers through Polish cities. The pressure on wallets is likely to persist as long as geopolitical tensions keep crude markets unsettled.