Gov't eliminates fuel duty as first step in promised anti-inflationary measures

"We decided to decrease the customs duty on fuel to 0% as of Sept. 10," said Prime Minister Jerzy Buzek. "We left the inflation peak behind, but it does not mean that the government should not undertake anti-inflationary decisions," he added. Such undertakings were demanded by the Monetary Policy Council (RPP) members, which blamed the 11.6% inflation in July on rapid changes in fuel and food prices. Most economists said food trade liberalization was needed. The government only agreed to fuel liberalization. It does not mean that fuel will become cheaper, as the excise duty increased on Sept. 1. According to Buzek the excise duty increases will not affect inflation, as the increases are lower than inflation. He also added that the government is planning some other anti-inflationary decisions, especially in the telecommunications, energy and transportation sectors. (Gazeta Wyborcza, page 22)