Polish Finance Minister stated on Friday that there would not be an increase of excise tax for fuels in Poland in September as planned earlier. Mr Kluza added that high oil prices and good shape of the economy make such a move unnecessary.
Our view: There was a speculation on the increase of fuel excise tax in the second half of last week as market expected the government to take such a move to push up revenues for 2007 budget. Although we cannot rule out that the increase will take place later, the delay is slightly favorable for Polish oils as higher excise tax might curb fuel demand.