Analyst Marek Nemke from XTB Financial Markets claims that the decline in the price of raw materials is mainly due to the parliamentary elections in Poland. It takes place in Poland two weeks after voting in Slovakia.
The government, led by the Law and Justice Party, is allegedly putting pressure on the Orlen Group to keep fuel prices artificially low.
“This would support the current government, which could eventually be re-elected. However, Orlin denies such accusations and calls on consumers not to store fuel in containersBecause it claims that it does not plan to raise prices after the elections. This could mean that Poland is starting to suffer from fuel shortages, as confirmed by Shell’s decision to introduce a 100-litre refueling limit.
Orlin does not plan to regulate prices
Politicians also expressed concern about potential gasoline shortages. For example, opposition MP Ryszard Pietro stated that Orlin’s actions just before the elections could cause serious gasoline shortages at stations, according to TVN24.
The station also recalled the words of the head of the Orlen Group, Daniel Obajtik. “We cannot introduce artificial price regulations because it would be a regulated economy,” he said in April.
Low prices are not sustainable
Czech drivers come to Poland, where they can refuel for up to 8 CZK (1.2 PLN) cheaper per litre.
According to him, this controversy began to grow in Poland because just a few weeks ago we witnessed a significant drop in interest rates in Poland, which was also speculated as a political move. He stressed that the elections will be held next October 15, so after the elections we will see whether these moves are correct or purely political.
The European Commission may impose a heavy fine on Poland In the event of disruption of competition and challenge to political movements.
Even taking into account diesel prices, it is clear that Poland has almost the cheapest fuel. Slovakia ranks tenth, down one place compared to last week. The Czech Republic remained unchanged in seventh place in terms of diesel prices in the EU.
Fever at gas stations
Czech economist Lukács Kovanda also concluded this Extremely low fuel prices drive a shopping frenzy in Poland. This is partly because people fear that these low prices will not last long, leading to over-stockpiling.
“But at the same time, the appetite of companies importing fuel into Poland from other countries is decreasing. In short, low margins in Poland discourage the country from sourcing fuel from abroad, so Poland has to rely more on its domestic suppliers.” But their production capacity is not infinite, and supplies are inexhaustible.”
Therefore, according to Kovanda, Poland faces a similar situation to what happened in Hungary last year, which had to abandon the system of keeping fuel prices very low in dramatic circumstances due to fuel shortages.
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