Natural gas for propulsion in vehicles exempted from excise duty. The Polish Parliament voted on 20 July 2018 for Excise Act update, under which CNG and LNG for vehicles will no longer be charged with excise duty. It means a decrease in methane price even for 0.67 PLN per kilogram. Exemption from excise duty will come into force probably in the Q4 of 2018. The updated Excise Act have to be approved by the European Commission.
The idea of abolishing excise duty on CNG and LNG was presented by the Ministry of Finance in December 2017. Primary CNG/LNG industry hoped, that implementation migh happen in June 2018. Finally, the Excise Act was adopted in the last Parliament vote before the summer break in the Parliament, and the expected date of entry into force is the beginning of the fourth quarter 2018.
The exemption of natural gas from excise duty should significantly reduce prices at CNG/LNG stations. In case of LNG, it will be 0.67 PLN [0.16 EUR] per kilogram (in relation to Nm3 – approx. PLN 0.50 [0.12 EUR]), while for CNG – PLN 10.50 / GJ (calculated on Nm3 – approx. PLN 0.34 [0.08 EUR]). There is no clear information on what will happen to the fuel surcharge. It can also be abolished and currently amounts to PLN 0.16 [0.04 EUR] per kg of gas (about PLN 0.12 for Nm3 [0.03 EUR]). The amendment to the act is also the end of incomprehensible division in the taxation of CNG and LNG, which until now was dependent on the state of methane concentration and for unknown reasons predisposed the CNG.
The Act, after its adoption in the Parliament, will be sent to the Senate at the beginning of next week, and from there for signature by the President. Bearing in mind the broad support of the vast majority of the Parliament – 393 votes for in 424 voters in general – can count on acceptance also from the rest of Polish Administration. The renewed Excise Act remains the approval of the European Commission.
Source: Polish Parliament, own
See also
– Polish LNG stations – map and list