It has already been the second week that fuel prices at stations are rising. Polish fuel market experts had warned that this would happen once the CPN (Lower Fuel Prices) package ceased to apply. This ultimately occurred at the end of June. On that day the government decided to restore the VAT on fuel from 8% to 23%. Previously, a hike in excise duty was chosen, which had been lowered to the minimum level allowed by the European Commission.
Fuel getting more expensive
Fuel in retail sales is rising for the second week in a row. In the second week of July the average price of unleaded 95 gasoline was 6.85 PLN per liter – according to BM Reflex data. This means an increase of 7 groszy per liter compared to the previous week. You also had to pay more for diesel, which averaged 6.99 PLN per liter, i.e., 5 groszy more than the week before. It is worth noting that gasoline was more expensive than at the end of March, when the government decided to introduce the CPN package, arguing it was help for drivers. They no longer need it, since they have to pay even more than then?
The only fuel that recorded a price drop this week is autogas, for which the average price was 3.21 PLN per liter, i.e., 8 groszy less than the previous week.
Retail prices are 15% higher than a year ago. For 95 gasoline this means a difference of 91 groszy per liter, and for diesel 92 groszy per liter.
It is expensive, and it will get even more expensive
If the government does not decide to restore the CPN package, and there is no indication of that, drivers who will travel on holiday will have unpleasant surprises at the pump – because, as economists note, everything points to the fact that retail fuel prices will continue to rise. This is not only related to seasonality. The fact is that fuel has always become more expensive during the holiday season, but never so dynamically. This is related to wholesale prices, which have also risen significantly.
On Friday, July 10, Orlen offered Eurosuper 95 gasoline at 5,500 PLN per cubic meter. After adding VAT (other taxes, including excise, are already included in the wholesale price) this gives a retail price of 6.77 PLN per liter. This is 20 groszy more than a week earlier. An even larger increase is seen for diesel. Orlen offered wholesale diesel at 5,768 PLN/m3, which after adding VAT gives a retail price of 7.09 PLN per liter, i.e., 32 groszy more than a week earlier.
It is worth noting that the rise in wholesale fuel prices is influenced, among other things, by the weakening zloty against the dollar.
See also: Will fuel prices fall even more? The bank pulled back forecasts. The risk of a return to inflation remains relevant
