At the beginning of October, the deputy finance minister announced that the excise duty on LPG would increase by 4 groszy per litre in 2005, and on unleaded petrol by 5 groszy per litre, which would raise the price of LPG in 2005 to around PLN 1.90 per litre and unleaded petrol to PLN 3.93 per litre. Meanwhile, it is still October 2004, and prices have already exceeded the threshold mentioned by the deputy minister. Asked why LPG prices continue to rise despite the excise duty not being increased, the deputy minister replied that market prices were influencing the increase.
Prices for Bolesławiec are set in Wrocław
Retail fuel prices are not set by station managers, but by regional representatives of the producers. Regional Retail Trade Offices were established for this purpose. In the case of the PKN Orlen group, the office for the Lower Silesian Voivodeship is located in Wrocław. Decisions concerning fuel prices at a specific station are made there. Since PKN Orlen has the largest distribution network in the region, it is a monopolist.
Orlen’s dominance can be seen whenever retail prices fluctuate. Whether we go to a Shell or BP branded station, fuel prices will be the same as at an Orlen station. Other stations simply adjust to the monopolist’s prices. Due to its location, Bolesławiec is classified as part of the so-called border belt. Therefore, the geographical factor has a significant influence on prices.
Fuel prices in border towns are, and will remain, higher than those offered by other stations in the country. Put simply, the price decreases depending on the distance from the western border. The closer to the border, the more expensive it is.
Could it be cheaper?
There is no point expecting prices to fall. There are more than a dozen stations in Bolesławiec and the surrounding area. The prices they offer are practically identical. For now, there are enough customers for expensive fuel for everyone. In reality, the competition for Orlen comes from petrol stations built next to hypermarkets. One can only hope that such a hypermarket will soon be built in Bolesławiec.