Orlen increases wholesale fuel prices again

On Tuesday, Orlen increased wholesale fuel prices, including Ekodiesel diesel oil by PLN 35 per cubic meter and unleaded Eurosuper 95 petrol by PLN 26 per cubic meter. – according to data published by the company. Earlier, on Monday, both of these basic fuels had become significantly cheaper.

According to Orlen's current wholesale price list, on Tuesday, Ekodiesel diesel oil costs PLN 6,796 per cubic meter, i.e. PLN 35 more than the day before, while Eurosuper 95 unleaded petrol costs PLN 5,450 per cubic meter, i.e. PLN 26 more than the day before.

On Monday, Orlen reduced wholesale prices of fuels, including both basic ones, Ekodiesel diesel oil by PLN 280 – to PLN 6,761 per cubic meter, and unleaded Eurosuper 95 petrol by PLN 290 – to PLN 5,424 per cubic meter.

Orlen recently explained that wholesale fuel prices are correlated, among others, with the quotations of these products on European marketsand also result from contractual conditions and logistics costs, while the retail price is the result of the current sales policy, as well as wholesale product prices and the competitive environment in a given micromarket.

The company emphasized that an important factor is the fact that over 30 percent fuels available in Poland are importedwhich means the need to purchase a significant part of the volumes at prices applicable on world stock exchanges. He also pointed out that this is why the price level at domestic stations is determined by both local producers and importers who import fuel from abroad.

Global crude oil prices, as well as finished fuel prices, began to increase in the days following February 28, i.e. after the US and Israel attack on Iran. This was the market's reaction to the blockade of the Strait of Hormuz, which is strategic for the maritime transport of energy resources from this region, as well as to attacks on mining and refining infrastructure in the Middle East.

Due to rising fuel prices, last week the government announced a temporary package of regulations intended to limit the price increase of these products. On Tuesday, the maximum prices for fuel at stations are in force, which were set by the announcement of the Minister of Energy published the day before in Monitor Polski.

It follows that the maximum price for unleaded 95 petrol is PLN 5.42 per liter, and increased by the value added tax, it is to be no higher than PLN 6.16. The maximum price for 98 unleaded petrol was set at PLN 5.98 per liter, plus VAT in the amount of PLN 6.76 per liter. In turn, the maximum price for diesel oil is PLN 6.76 per liter, plus PLN 7.60 per liter, plus VAT.

Draft laws to limit the increase in fuel prices were adopted by the government at an extraordinary meeting and sent to the Sejm last Thursday. Work on both acts started in the Sejm on the same day. On Friday, the Sejm passed both bills, and then they were supported by the Senate. On the same day, the act was signed by President Karol Nawrocki. On Saturday, they were published in the Journal of Laws, as were two regulations of the Minister of Finance and Economy – on the reduction of excise duty and VAT.

On the US crude oil market on Monday, WTI contracts for April increased by 4.60%. to USD 104.22 per barrel, while May Brent futures increased by 1.42%. to USD 114.17 per barrel.

On Tuesday, European Union energy ministers are to discuss during a virtual meeting the possibility of a joint response to rising fuel prices in the face of the war in the Middle East. The meeting will be preceded by the presentation by the European Commission of a “toolbox” with proposed solutions. (PAP)

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