bpetrol in Poland is almost the cheapest in Europe, Orlen convinces us. It is not true. Polish drivers pay relatively little because we have expensive petrol and low taxes. In other countries, fuel is much cheaper, but subject to higher taxes. In Poland, Orlen earns more from fuels, in other countries – the state.
- The price of petrol without tax in Poland is the highest in the EU
- Only the Swedes pay more from diesel
- Orlen points out that Poles pay almost the minimum in the EU for petrol and crude oil
- This is true, but it’s not thanks to Orlen, but low taxes
- Thus, Orlen earns the best on fuel, while Budget earns the worst
Excluded taxes we pay more in the European Union for gas, and diesel is cheaper only than the Swedes – writes “Business Insider”. How is it possible? After all, Orlen himself, the current monopolist, provides data to prove this fuel in Poland is cheap compared to Europe. Only a few countries pay less.
It is true. Including taxes, fuel in Poland is relatively cheap. “With tax” – so we are talking about the final price that we see at the distributor. Our gasoline it is the fifth cheapest in the EU (with an average price of 6.53 PLN/l) and diesel the eighth cheapest (with an average price of 7.66 PLN/l). It is the cheapest in Malta and Bulgaria.
Very interesting and strange things happen when we factorize the price of fuel into prime factors. It turns out that a liter of Pb95 petrol for PLN 4.47 excluding tax is the highest price in the European Union. One liter of diesel for PLN 5.65 it is more expensive only in Sweden (of 49 g after conversion).
“The problem is that we can only be satisfied with the diesel price and only compared to Sweden, because in the rest of the countries both petrol and diesel are cheaper. And it’s much cheaper” – reads in “BI”.
What does it come from? As “BI” writes, in Poland tax-free fuels are very expensive and taxes are low. As a result, we pay relatively little. But the Polish budget is the worst. In other countries, fuel is cheaper, but its tax burden is high. Gasoline or oil are therefore more expensive than in Poland, but the budgets of these countries are not at a loss. In U.S Orlen earns the best.
“BI” refers to data from the latest “Weekly Oil Monitor” report released by the European Commission on 19 December. It follows that in Germany petrol is 0.71 PLN cheaper than in Polandand diesel for PLN 0.68. The cheapest is in Malta, where diesel is PLN 3.06 cheaper than in Poland (always calculated without taxes) and Pb95 petrol of PLN 1.72.
How does Orlen make money?
Płock concern vows not to rob Polish pilots. To confirm this thesis, he publishes data showing that in the third quarter of this year only 4 percent of the operating result came from sales in Polish stations fuels, including coffee and hot dogs. “PKN Orlen’s fuel sales results show best that the concern is not taking advantage of the difficult situation and I don’t make money from drivers” – reads the press release.
Fuel market experts add that Orlen most likely has a very high refining margin, i.e. derived from crude oil processing. A small margin in the stations is therefore not a source of income for the company, because it makes them at an earlier stage.
“A year ago the price of a liter of gasoline 95 without taxes and fees was one of the lowest in Europe in Poland. Today, after the VAT reduction financed with our taxes and Orlen’s ‘promotions’, we are at the forefront,” Andrzej Domański, chief economist at the Civic Institute, noted on Twitter. The graph shows that the price of 95 in our Country before tax in terms of amount is third in the European Union: worse only Denmark and Spain.
“Where could it come from?” The market situation and the VAT reduction were probably used by the fuel companies to sharply increase their margins. What drivers should get thanks to VAT reduction-u, was partly offset by the higher margin of fuel concerns – Domański assesses in an interview with next.gazeta.pl.
In addition, the economist also presents his own potential calculations profits Orlen. – It can be estimated that for every liter of fuel sold in the third quarter of this year, Orlen earned approximately PLN 0.86. This profit is considerable. In the third quarter of 2021, it was around PLN 0.33.
Do we have an alternative in Orlen?
BusinessInsider.pl reminds that the principle of fixing fuel prices – which PKN Orlen himself described to him – is that the level must be lower than with the alternative source.
“And from the source of the influx of processed fuels to Poland Russia is less and lessto i competition has dropped dramatically. In a normal market situation, when no one has too much advantage in the market, one company’s margin situation is exploited by the other, by lowering prices.
In support of its thesis, the portal provides examples of prices from petrol stations near the borders with Slovakia and Germany, “where it is easier to use alternative supplies in Orlen”.
It’s worth adding that it’s not like we’re constantly overpaying. There were days in 2022 when Polish refineries filled the market with fuel up to PLN 1 per liter cheaper than German ones, the portal points out.
Read also: https://innpoland.pl/188704,ile-rosyjskiej-ropy-przerabia-orlen-w-kwartal-zarobil-na-niej-miliard-zl
