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Orlen answers questions about the miracle at the stations. Firm wants to ‘avoid price shocks’

On 1 January 2023, a new rate came into force in Poland fuel tax. After midnight, it’s up 15%. – 8 to 23 percent. Some drivers are surprised that the price hasn’t changed. “Why hasn’t the price of fuel changed? Someone smart explain it to me” – asks one of the Internet users who filled up before midnight and after midnight, and paid the same for a liter of fuel.

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Orlen answers the question about fuel prices. VAT on the rise, but same on the pylon

The press office of the fuel giant sent a statement to the editorial staff of next.gazeta.pl. “PKN ORLEN is constantly taking measures to ensure that fuel prices in Poland are among the lowest in the European Union and we have succeeded. For many months we have also ensured the stability of fuel supplies to Polish drivers, despite the ongoing war and the unprecedented crisis of the world energy market”, reads the document.

What, however, has made the price unchanged, although it has increased tax?

The fact that fuel prices at ORLEN stations have not changed since 1 January, despite the increase in VAT and excise duties, is in line with PKN ORLEN’s policy to avoid price shocks as much as possible, especially at burden of consumers.

– reads the press release.

He refueled at Orlen before midnight and returned when the VAT went up. Ask for prices

Orlen: We haven’t passed on the entire price increase to consumers

The fuel giant also referred to previous actions related to pricing policy. “You have to remember that PKN ORLEN has not fully passed on the increase in fuel prices caused by the outbreak of war in Ukraine to its customers (resulting from both commodity prices and the unfavorable exchange rate of the zloty) and thus limited the dynamic price increases caused by these factors” – writes the press office of the company.

As the representatives of PKN Orlen explain, “the return of the VAT rate to 23% on 1 January 2023 and the increase in the excise rate have been translated by ORLEN into its wholesale prices so that such a rapid change of retail prices would not affect overnight customers”.

It is in the interest of the country’s energy security and the stability of the market supply to avoid rapid price changes at service stations, as such changes lead to irrational consumer behavior and thus destabilize the balance of production and sales and the logistics.

Orlen explains.

The company also points out that an important element that strengthens PKN ORLEN’s resistance to environmental fluctuations is also the diversification of business areas through building a strong multi-utility company. The first synergistic effects of the mergers carried out in the areas are already visible Buy oil and gas, logistics and optimization of production costs, which also affect the stability of fuel prices.

Analyst: We paid too much for fuel

Doesn’t the fact that prices have not changed since the VAT increase show that they could be lower? Dawid Czopek, CEO of Polaris FIZ, expressed his opinion on this matter in an interview with Next.gazeta.pl.

– The wholesale price of diesel was reduced by almost 0.90 PLN e gas from 80 groszy. For most of the fall, we have been contributing to the fact that now the situation that has arisen could happen. So that we do not notice that the VAT has been increased from 8 to 23%. We’ve been overpaying since the fall,” she said.

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