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Tax proposal threatens Polish CNG market
A government proposal to levy tax on compressed natural gas (CNG) is threatening to halt the development of the Polish CNG market, according to industry experts. There are 25 CNG filling stations in Poland, a number which is expected to double over the next two-to-three years.
CNG in Poland, a long way to go. Photo: Adriana Herbut
Finance Ministry plans to introduce excise duty of PLN700 per 1,000 kg on CNG could halt market growth. Sara Piskor of PGNiG, the state oil and gas company, says that “if the excise duty is introduced, all the money already spent on the development of a CNG network and the purchase of CNG-powered cars will go to waste. Since 2003, this has amounted to PLN100 million."
According to PGNiG's analysis, the current retail price of one cubic metre of CNG, which fluctuates between PLN1.50 and PLN1.75, would rise by another PLN0.55 to 0.60 if the tax were introduced. This would make CNG more expensive than LPG and seriously jeopardise future growth of the market.
Not EU-required
Introducing excise duty on CNG is not a requirement of the EU. Nearly half of EU countries currently have reduced or even zero excise rates for CNG, including Austria, Belgium, the Czech Republic, Estonia, Finland, the Netherlands, Ireland, Luxembourg, Slovenia, Hungary and the UK.
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