Poland will set a maximum price for unleaded 95 gasoline of 6.16 zlotys ($1.65) per liter from Tuesday, the Energy Ministry announced, as authorities in Warsaw begin implementing a cap on fuel prices, which are set daily, Reuters and the tvpworld.com website report.

The price of diesel will also be capped at 7.60 zlotys ($1.91) per liter, and for premium gasoline the maximum price will be 6.76 zlotys ($1.70) per liter, according to Agerpres.

On Thursday, Polish Prime Minister Donald Tusk announced a series of measures aimed at reducing fuel prices, amid rising energy costs following the war in Iran.

Poland, the largest economy in Central and Eastern Europe (CEE), will cut VAT on fuel from 23% to 8% and reduce excise duties to the minimum level allowed under EU regulations. Prices would fall by about 1.2 zlotys ($0.32) per liter for all types of fuel, Tusk told a news conference.

He added that the government would introduce a maximum price for fuel, which would be set daily by the Energy Minister.

In addition, the government could impose an exceptional tax on the profits of oil companies, the prime minister said.

Finance Minister Andrzej Domanski also announced that Poland’s decision to cut VAT on fuel would cost 900 million zlotys ($242.88 million) per month, while the cost of reducing excise duties is estimated at 700 million zlotys per month.