Double-digit increase on heating coal
16:38
State-owned Polish Mining Group (PGG) has raised the price of a tonne of heating coal from PLN 1,000 to PLN 1,200. The new rate has been in force since Tuesday. It explains this by the drastic increase in production costs from the beginning of 2022. As the company emphasizes, PGG's prices will still be among the lowest on the market.
PGG points out that, among other things, the steel necessary in the mines to reinforce the workings has become more expensive on the market by leaps and bounds. The company will pay 78 percent more for it than last year.
Electricity and fuels are also significantly more expensive, as well as services for mining plants. According to PGG's technical and economic forecasts, expenses this year will be as much as PLN 2.4 billion higher than last year. The company will also incur significantly increased expenditure on investment activities indispensable for increasing the production and sales of fuel coal for the municipal and utility sector. PGG will spend over PLN 1.12 billion more on investments than a year ago.
The dominant sales channel for domestic heating coal will remain PGG's online shop, which is widely available to individuals. Over 170,000 customers have purchased fuel there since the beginning of the year. Almost 700,000 tonnes of coal were delivered to households through the e-shop.
