Imported fuel still cheaper than locally produced despite latest price cuts

Last week the price of domestic fuel was over zl. 100 per tonne more expensive than imported fuel due to Poland's two largest producers delaying price reductions. As of Wednesday, the wholesale price of unleaded gasoline from Polski Koncern Naftowy (PKN) Orlen had been cut by zl. 70 per tonne. Another producer Rafineria Gdanska is to follow suit today. Despite the price cuts, the price of fuel from both producers is higher than that imported from abroad. The price of imported fuel, even after considering transportation costs, would still ensure that fuel at gas stations in Poland would be lower by zl. 0.11 per liter. The state of affairs however, will not bring about a change of policy by local producers especially PKN Orlen which has always taken advantage of its dominance on the domestic market to set fuel prices. The two producers also have a tendency of not reacting fast enough to falling petroleum prices on the global markets. The latest price cuts should have been implemented on July 6. (Prawo i Gospodarka, page 2) S.M.