Why are fuel prices in Bolesławiec much higher than at stations in other nearby towns? The difference is as much as 20–25 groszy per litre. Where do these prices come from, and why is Bolesławiec so expensive? We put these questions to Poland’s largest fuel producers, PKN Orlen and Grupa Lotos. Here are the companies’ responses:

Grupa Lotos:

Thank you very much for sharing your opinion with us regarding fuel price levels in the city of Bolesławiec. We greatly value all feedback, as it gives us the opportunity to learn how the LOTOS station network is perceived from the perspective of our customers.

In response to your feedback, we would like to inform you that retail fuel prices at stations are set in accordance with the company’s pricing strategy, which is determined individually for each location.

Pricing policy depends on the specifics of the particular micro-market. In a changing environment, it is natural for fuel prices to vary between different stations and different parts of the country.

PKN Orlen:

We kindly inform you that, when shaping its retail pricing policy, PKN ORLEN is guided exclusively by business considerations, macroeconomic conditions, and supply-and-demand relations.

This means that fuel prices at stations depend largely on independent macroeconomic factors, such as exchange quotations for finished fuel products, oil prices, and currency exchange-rate relationships.

Alongside these independent factors, local conditions in which a given facility operates are also important. These include differences in land prices, station operating and maintenance costs, such as wages, as well as differences in sales potential. The station’s immediate competitive environment is also significant.

For this reason, prices at individual stations may differ and are adjusted daily in response to changing local and macroeconomic conditions.

We would also like to point out that franchise stations are a separate case: pricing decisions there are made exclusively by the facility’s owner.

The situation is clear from the producers’ perspective. The difference in prices between individual stations depends on the specifics of the micro-market (according to Grupa Lotos) and local conditions (according to PKN Orlen). In fact, these are the same conditions taken into account when setting the final price: the station’s economic circumstances, competition, sales volume, transit traffic, and so on. Put plainly: if selling at higher prices is profitable and sellers achieve their intended goal, there is no reason to expect reductions. Ironically, one might conclude from this that we are wealthy and can afford it—which is why it is expensive.

Average fuel prices* in the voivodeship and nationwide

  • Lower Silesian Voivodeship: diesel – 5.01 zł, Pb 95 – 4.73 zł, LPG – 2.11 zł
  • Prices in Poland: diesel – 5.02 zł, Pb 95 – 4.70 zł, LPG – 2.07 zł

*data from the independent automotive website autocentrum.pl

Prices in Bolesławiec are generally high, but vary

Prices* at Bolesławiec fuel stations are not identical. The difference in diesel prices within the city is as much as 38 groszy per litre, while the difference for petrol is 32 groszy per litre. The difference in LPG prices is 15 groszy. It is worth noting that stations with more expensive fuel are generally located along the bypass, where transit traffic runs (national road 94 and access via national road 297, towards the A4 motorway). This means that anyone who wants to can refuel more cheaply.

At present, the cheapest diesel is available at Łukoil stations (by Rondo Solidarności) at 4.99 zł per litre, while the least expensive petrol is at the Tesco station, where Pb 95 costs 4.75 zł per litre. At the Shell station near the stadium, diesel costs 5.22 zł, while Pb 95 costs 4.79 zł. The most expensive diesel is at the PKN Olen station on Zgorzelecka Street, where it costs 5.37 zł per litre. At the same station, a litre of Pb 95 costs 5.07 zł

per litre.

As for LPG, at Łukoil (by Rondo Solidarności) it costs 2.14 zł, while at Shell near the stadium it costs 2.15 zł. At all the remaining stations, the price of gas is 2.29 zł.

* prices as of 5 March 2019