PLN 3.99 per litre of unleaded petrol and PLN 3.25 per litre of diesel. Almost all petrol stations in Bolesławiec offer these prices. Why is it so expensive?
Price Pressure
The answer to this question should be sought in the pricing policy of Polski Koncern Naftowy ORLEN. Poland’s largest fuel producer has a depot in our town, which supplies almost all the stations. PKN ORLEN justifies the high prices primarily by the high crude oil prices quoted on the London and New York exchanges. Meanwhile, most of the raw material imported by the company comes from Russia.
OPEC countries exert pressure on exchange prices by reducing or increasing production. The unstable situation in the Middle East, as well as the exchange rate of the US dollar, also has a major impact on the price of the raw material. The Russians naturally take advantage of the difficult situation on global exchanges and sell the raw material at prices only slightly lower than the exchange price.
The Border Strip
Among domestic factors, PKN ORLEN lists taxes imposed on fuels—VAT and excise duty—market conditions shaped by competition, and the so-called geographical factor. In Bolesławiec, the latter has the greatest impact on the final price offered at stations.
Our town is located in the area of the former border strip. This is the main explanation given for fuel prices being higher than in other cities. The explanation is at least strange, since Zielona Góra and the entire Lubusz Voivodeship are also in a similar geographical location, while prices there are 10–15 groszy lower per litre.
The Power of Competition
Are lower fuel prices in Bolesławiec possible? Yes, but only if the turnover of existing stations falls. As long as petrol stations have enough customers and do not have to compete for them, the price gap between Bolesławiec and other cities will not decrease.
Another way to obtain cheaper fuel could be the opening of a new hypermarket with a petrol station. Stations at hypermarkets, such as those in Legnica, always offer fuel at lower prices than ORLEN stations.