Poland's Energy Ministry Discusses Fuel Price Reductions with Orlen

Poland's Energy Ministry is engaging in talks with the state-controlled oil giant Orlen to explore ways to reduce fuel prices for consumers. Minister of Energy Miłosz Motyka stated on Monday that the scope of current promotions at Orlen stations needs expansion. He indicated that the ministry is also working on a revised version of a tax bill, but details remain undisclosed due to concerns about potential presidential objections.

Motyka acknowledged that a presidential decision to send a tax law on oil company profits to the Constitutional Tribunal complicates new support measures by limiting the government's financial options. He urged Orlen to demonstrate flexibility, particularly regarding retail margins, while emphasizing the need to avoid fuel shortages, a problem that occurred in 2023 under the previous government.

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We don't want to allow a situation where, as a result of actions on margins, there is a lack of fuel in Poland, as happened in 2023 under the previous government.

Orlen, however, explains that refinery margins are tied to global commodity prices and cannot be arbitrarily adjusted. The company maintains that retail margins are already at a minimum but is willing to offer additional promotions. Orlen asserts its commitment to national energy security, stating that its operations align with its statute, which includes ensuring the country's energy security.

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The refinery margin reflects the market relationship between the cost of raw materials and product prices, and results from global conditions such as supply and demand, inventory levels, or geopolitical conditions.