This is not the first time in history that gas stations sell them to customers at a cheaper price than the wholesale price of Poland’s largest fuel supplier, that is, PKN Orlen. But there was never such a big difference before. Let’s hurry to refuel before Christmas, because this situation may not continue after Christmas.
- Stations keep prices below wholesale prices for more than a month
- Negative margins have never been this big before, and the time for the station’s losses in fuel sales hasn’t lasted more than two months. Soon prices may jump above PLN 6
- Fuel prices are critical to current inflation rates
- Diesel prices are kept lower than gasoline. Orlin confirms this, reporting margins several times higher on gasoline
- More such information can be found on the home page of Onet.pl
– Only in Poland, everything was done to make prices among the lowest in Europe. Had it not been for the actions of the Polish government that is fighting the fuel mafia and improvements made by Orlen, it Prices had long exceeded 7 PLN per liter He argued a few days ago PKN President Orlen Daniel Obajtek in an interview with “Dziennik Gazeta Prawna”.
Market data suggests that it may not just be about optimizing and liquidating the fuel mafias. For at least a month, prices at stations remained artificially low.
Perhaps it is the fear of stations against raising prices above PLN 6 per liter, or perhaps a top-down rule and pressure from the largest network of stations on the market (Orlen, BP, Lotos), but given the average retail prices in Poland and wholesale prices in Orlen can Conclusion That’s for a month Gas stations lose 15-18 pounds per liter on diesel. For gasoline, it’s just a penny.
Moreover, in the case of diesel, it is the second month in a row. At the end of September, the official wholesale price in Orlin was 4.69 PLN excluding value-added tax, that is, by adding 23 percent. Of this tax, 5.77 PLN per liter. Meanwhile, according to the Central Statistical Office, stations were sold at an average price of 5.62 PLN per liter – PLN 0.15 cheaper than the possible purchase price.
The situation changed in the last days of October, but at the expense of the service station. The wholesale price of diesel is PLN 5 per liter, including VAT 6.15 PLN, e-gasoline data show that the average price in Poland is 5.97 PLN. When these prices are put together, it turns out to be average The plant loses 18 grs per liter. As of August, the average income was 0.16 PLN, a Last year the average was a whopping 37 profit, Which we calculated by comparing wholesale and retail prices set by the Central Bureau of Statistics at the end of each month.
In red no more than two months in a row
It’s not that similar situations with negative margins for stations haven’t happened before. Since 2010, we counted 17 such months. But the loss never reached 18 meters per liter.
Before September of this year, the most negative margin was in May 2016 and amounted to 0.22 PLN per liter. Negative margins usually do not exceed 0.70 PLN in odd months. It has not entered into force for more than two consecutive months. The most negative month for stations was in 2018. – Up to four happened at that time: April, May, September and October.
There is also the other side of the coin. Last year due to lower demand at the beginning of the epidemic in Poland, margins were record high. In March 2020, the station earned an average of PLN 0.44 per liter, and PLN 0.70 per liter in April. But sales fell dramatically, and costs had to at least be covered or losses reduced.
What are the causes of the current standard negative margins? After all, the station wouldn’t last long if it had to lose out on the basic commodity sold to customers.
First, some stations may have Long term contracts with distributors. Rather, it will not be a year, but a month or two that may happen. Then they will still receive fuel at prices prior to the recent increases, lower than the current official wholesale prices in Orlen, and they can still earn fuel.
Second, some stations can Stocks accumulated a few weeks ago are still sold And wait in the hope that prices will eventually come down. The recent bearish moves in Crude Oil suggest that something like this may eventually happen. You can also get files We hope to strengthen the zloty.
Third, v Fear of losing customersSome stations may accept wasted fuel, and instead raise prices for other goods such as sausage, coffee, and snacks. Just don’t show the price with the six in the front on the pylon.
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Finally, many stations can use these methods to meet the competition of the largest chain – Orlen, which has 1.8 thousand in the country. 7.8 thousand stations. everyone. “If Orlen doesn’t go up to PLN 6, so do we” The owner might think.
And by the way, Orlin, at least temporarily, does to the government low inflationEspecially recently pumped up with fuel prices. This indicator is very important because it influences the movements of the currency market, but it can also influence the decision of the monetary policy board and raise interest rates. What Orlen does not want to get, because he uses external financing, like most large companies in Poland.
Where do differences come from on the same network?
Recently, figures from 5.97-5.99 PLN per liter on towers have become more common, and it can be said that the price in Poland has become standardized due to the pressure of PLN 6. However, the differences are usually greater. Why in Orlen stations or other networks, located close to each other, prices can be completely different? After all, these differences are not visible in the Biedronka or Lidl chains, or in McDonald’s restaurants.
First, not all branded stations belong to the same company. The Orlen Group operates a network of 2,854 gas stations in five countries (1,800 in Poland), of which 2,328 are owned and 526 stations are operated by external entities in the concession agreement system.
drug boo, Competition in the region is the best explanation for prices. The more stations nearby, and it usually increases in density as more traffic is expected in the area, the prices should encourage you to turn around here, and not two hundred meters away. If there are several stations next to each other, they should monitor the prices.
Thirdly, unlike Biedronki, for example, the turnover of individual stations can be very different, so Margins should be different to cover fixed costsie, staff recruitment, property maintenance costs. Therefore, in the city centers, do not expect the price to be low, because you have to cover the cost of renting the property with a margin.
Fourth, Orlen and Lotos sell fuel to stations under various contracts. Some have a longer life span with a longer maintenance horizon, while others are changed more frequently. It is not always necessary that the official wholesale price advertised on their websites is by Orlen or Lotos. This may lead to different operating conditions for individual stations.
Fifthly, each of the Polish state-owned producers pays attention to the size of the group of recipients of their products and, accordingly, orders crude oil of a certain quality in accordance with the proportion of diesel and gasoline users. In its third quarter report, PKN Orlen announced production margin it was aware of The diesel was $48. On a ton, but already on gas it reaches $ 175. This means that prices are equivalent at the stations at the expense of petrol cars. However, there are fewer “gas stations”.
According to PKN Orlen’s estimates in the latest financial report, total drivers purchased in the third quarter of this year in Poland (not only in Orlen) 4.88 million tons of diesel and 1.41 million tons of gasoline. Exposing yourself to diesel users and discouraging you from visiting your gas stations does not mean exposing yourself to petrol drivers.
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