State-owned PKN Orlen allegedly inflated fuel prices last year, causing outrage amongst motorists and local governments.
PKN Orlen, Poland’s state-owned fuel company, is accused of deliberately inflating margins on its fuels last year after an expected price hike due to the return of higher tax rates failed to materialise.
On 1 January, tax rates on fuels in Poland reverted to levels seen before the so-called ‘anti-inflationary shield’ introduced at the end of 2021 excluded petrol from VAT.
However, due to PKN Orlen’s decision to significantly drop fuel prices on the last day of 2022, drivers did not feel the change at the pumps and now accuse the state company of artificially inflating prices.
Polish government introduces ‘anti-inflation shield'
Poles will soon benefit from tax cuts and see a reduction in fuel prices as part of the so-called “anti-inflation shield”, the government announced on Tuesday.
“Today we have started to implement the assumptions regarding the anti-inflation shield. It is supposed …
Local government officials are calculating their losses. Their administrative units were forced to spend. For example, representatives of the Upper Silesian and Zagłębie metropolitan areas estimate to have spent around PLN 3 million (€642,000) more on public transport due to the more expensive fuel.
According to mBank research economists, Orlen’s price engineering also impacted inflation in Poland, estimating the increased fuel prices drove inflation to 17.5% in November instead of the predicted 16.9%.
Poland’s ruling Law and Justice party politicians have been cautious about Orlen’s pricing efforts.
“If there were any abnormal behaviour in the market, we always have the Office of Consumer and Competition Protection, which can intervene,” Climate and Environment Minister Anna Moskwa told RMF FM.
“I believe that, as in previous months, these [fuel – ed.] prices are maintained. The Orlen’s president announced that the price would be stable, and it is,” she added.
(Bartosz Sieniawski | EURACTIV.pl)
Source: euractiv.com
