Poland's Orlen taps strategic fuel reserves to keep prices low, report says

Unimot SA

20/09/2023 11:17

WARSAW, Sept 20 (Reuters) - Poland's state-controlled
refiner Orlen has used strategic  reserves to keep prices at
fuel stations low, tame inflation and support the ruling Law and
Justice (PiS) party ahead of October elections, thinktank
Polityka Insight said without citing sources.
    Orlen did not immediately reply to Reuters' email and phone
calls seeking comment. 
    Polityka Insight said Orlen is selling diesel it imports at
less than the price it pays, which has made privately-owned
competitors halt sales to avoid selling at a loss. To make up
for the reduced private supplies, Orlen has tapped into
strategic fuel stocks, Polityka Insight reported.
    Prices of fuel offered by Orlen, which controls over 60% of
the wholesale market, have fallen by between 8% and 12% this
month, with retail prices tracking the decline, Reflex, a Polish
fuels trader and consultancy, said. 
    Global oil prices by contrast have risen for three
consecutive weeks to approach 10-month highs. The zloty has lost
some 5% to the dollar this month, making it more expensive for
Polish buyers to import dollar-denomiated crude. 
    The disparity between wholesale prices in Poland and the
cost of imports has led to lower supplies from abroad, which
typically cover between 20% and 30% of local consumption. Fuel
imports have become unprofitable, Polish energy group Unimot
said on Monday.

 (Reporting by Marek Strzelecki, additional reporting by Karol
Badohal; editing by Barbara Lewis)
 ((Marek.Strzelecki@thomsonreuters.com;))