Poland to limit gas price rises for some public institutions, says minister

"This (mechanism) meant that the increase in gas bills for households was still very big, but a 54% average increase for these customers compared to several hundred percent, even up to 800%, for other entities, we must say that it was quite reasonable," he said. The measures on gas prices are expected to feature among a set of fresh steps to soften the impact of inflation on voters that will be announced later on Tuesday.

Poland's government is planning a new law to limit the impact of rising gas prices on public institutions such as hospitals as part of a package of measures to combat inflation, a deputy prime minister said on Tuesday. Energy prices have surged across Europe in the last year, as the lifting of COVID-19 restrictions put huge demands on depleted stocks of natural gas against a backdrop of tight supply.

Businesses across Poland have reported receiving notification that their gas bills will be many times higher than in 2021, but the impact on institutions such as hospitals has been particularly worrying for voters. Asked whether Poland would take action to help such institutions, Jacek Sasin replied that it would.

"This bill was prepared at a rapid pace due to the recent surge in gas prices," he told public broadcaster Polskie Radio 1, adding that the law would expand the use of a tariff mechanism applied to households. "This (mechanism) meant that the increase in gas bills for households was still very big, but a 54% average increase for these customers compared to several hundred percent, even up to 800%, for other entities, we must say that it was quite reasonable," he said.

The measures on gas prices are expected to feature among a set of fresh steps to soften the impact of inflation on voters that will be announced later on Tuesday. Poland has already announced tax cuts on energy, petrol, and basic food items, as well as cash handouts for households. Economists have said these measures will lower the peak of inflation in the first half of 2022 but could boost it later.

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