Orlen reduced wholesale prices for gasoline and diesel in Poland
The Polish energy group Orlen reduced wholesale prices for gasoline and diesel following a noticeable increase in fuel prices in September. The new quotes dropped to the lowest levels in more than two weeks.
According to Business Insider Polska, the wholesale price of Pb95 gasoline decreased by about 12 groszy per liter, and diesel fuel by about 11 groszy.
Compared to this year's peak values, Pb95 gasoline in Orlen's wholesale price list has already become cheaper by about 34 groszy per liter, and diesel by about 30 groszy.
The decrease is facilitated by easing tensions on the international fuel market. Oil and European oil product quotes have retreated from September highs, particularly amid increased supplies from the Middle East. According to Polish media, Orlen's wholesale gasoline and diesel prices are currently the lowest in more than two weeks.
However, the reduction in wholesale prices does not mean the same and immediate price reduction at gas stations. Retail prices also depend on the purchase cost of already formed stocks, logistics, and operators' margins. In the second half of September, average prices at Polish gas stations remained high: Pb95 gasoline cost about 8 zlotys per liter, and diesel approached 9 zlotys.
Orlen expands fuel supplies to Ukraine
Changes on the Polish fuel market are also important for Ukraine, as Orlen has recently been expanding cooperation with Ukrnafta. In September, the Ukrainian company contracted Arctic diesel fuel produced by Orlen and has already started its supply to Ukraine.
Subsequently, the companies signed a memorandum on deepening cooperation in the supply of petroleum products and logistics. According to Ukrnafta, the agreements provide for the possibility of fuel supplies to Ukraine worth up to $500 million. The parties are also considering the use of tank trucks to enhance the logistics capabilities of the Ukrainian company.
Orlen, for its part, noted that cooperation with Ukrnafta should include the supply of petroleum products to the Ukrainian market. In addition, the companies are considering the possibility of supplying Ukrainian oil for processing to refineries in Central Europe.
Meanwhile, the current reduction in Orlen's wholesale prices in Poland does not itself mean automatic fuel price reductions in Ukraine: the cost of imports depends on specific contractual terms, logistics, exchange rates, and the situation on the European market.
Source: Business Insider Polska, Ukrnafta, Orlen
