Polish oil refiner Orlen reduced wholesale fuel prices Monday, reversing increases implemented over the weekend amid new government regulations aimed at lowering costs.
Orlen Adjusts Fuel Prices
Orlen lowered wholesale fuel prices on Monday, including Eurosuper 95 gasoline and Ekodiesel diesel fuel, after raising them on Saturday.
The price of Eurosuper 95 gasoline decreased by 290 złoty per cubic meter to 5,424 złoty, while Ekodiesel diesel fuel fell by 280 złoty per cubic meter to 6,761 złoty, according to company data.
Weekend Price Increases
Prior to Monday’s reduction, Orlen had increased the wholesale price of Eurosuper 95 gasoline by 103 złoty per cubic meter and Ekodiesel diesel fuel by 171 złoty per cubic meter on Saturday.
Government Price Controls Take Effect
The first announcement from the Minister of Energy regarding maximum fuel prices is expected to be published in the Polish Monitor on Monday afternoon, with the price cap taking effect on Tuesday, according to Deputy Minister of Energy Wojciech Wrochna.
Regulations from the government’s “Lower Fuel Prices” package, including amendments to the act on oil reserves, came into effect Sunday, establishing a mechanism for calculating maximum fuel prices at stations.
The maximum price will be determined by a formula including the average wholesale price, excise duty, fuel surcharge, a sales margin of 0.30 złoty per liter, and VAT.
Lower Prices Expected at Stations
Fuel stations are expected to reflect the lower prices as early as Tuesday, March 31st, pending technical adjustments to fiscal cash registers.
The amendment stipulates that, during the period of reduced VAT rates, fuel sellers must adhere to the maximum price.
Tax Adjustments Implemented
An amendment to the excise tax law also came into effect Sunday, allowing for temporary reductions in excise duties on fuels until June 30th, applicable to diesel and gasoline.
Regulations reducing VAT to 8% and excise duties on fuels were published in the Journal of Laws on Saturday evening, effective March 31st and March 30th, respectively.
Reduced Excise Rates
The reduced excise rate for gasoline is 1239 złoty per 1000 liters, for diesel fuel it is 880 złoty per 1000 liters, and for biocomponents constituting self-contained fuels, it is also 880 złoty per 1000 liters.
Legislative Process
Bills enabling the limitation of fuel price increases were adopted by the government and sent to the Sejm last Thursday, swiftly passing through both houses of Parliament and signed into law by President Karol Nawrocki on the same day.
Government Aims for Price Reduction
Prime Minister Donald Tusk stated last week that the “Lower Fuel Prices” package should lead to lower prices at stations, and indicated the possibility of a tax on excess profits for fuel companies if they achieve disproportionately high margins.