The country in Europe where foreign drivers queue for gas. The price dropped to 1.49 euros/liter after the fuel cap
The Polish government's program to cap fuel prices is beginning to have visible effects in the region, attracting more drivers from neighboring states to cross the border to fill up on gas at some of the lowest prices in the European Union.
The phenomenon was initially flagged by PKO Bank Polski SA economists after retail sales data showed a 13.4% increase in fuel consumption in April compared to March.
However, the bank's internal analysis shows that customer card transactions at gas stations have remained stable, which suggests that the advance comes from other sources of demand, including companies or foreign customers, reports Agerpres.
“PKO customers' card spending at gas stations has remained virtually unchanged,” stated the institution's economists, coordinated by Piotr Bujak.
Since April, Poland has reduced fuel taxes and introduced a price cap mechanism, measures to cushion the impact of rising energy costs. Warsaw authorities are considering extending the scheme until June, according to Finance Minister Andrzej Domański.
The cost of this program is estimated at about 1.6 billion zlotys per month (about 440 million dollars).
Currently, a liter of Eurosuper 95 gasoline costs on average 1.49 euros, making Poland the second lowest price in the EU, after Malta.
Orlen SA, Poland's main fuel distributor, claims that the influx of foreign customers has not had a significant impact on its sales volumes, and will provide further details when it releases its quarterly financial results.
