The Polish government’s program to cap fuel prices at the pump is attracting drivers from neighboring countries to cross the border and refuel with some of the cheapest gasoline in the European Union.
This phenomenon was first noticed by economists at PKO Bank Polski SA, after retail sales data on Monday showed a 13.4% increase in fuel sales in April compared to March. Official statistical data does not match the bank’s own data, which showed that personal card transactions at gas stations remained practically unchanged last month, according to Bloomberg.
The double-digit jump in fuel sales "was probably due to increased demand from foreign companies or entities," said economists at PKO Bank, led by Piotr Bujak. "Card spending by PKO customers at gas stations remained stable during this period," added economists from Poland's largest bank.
Since the beginning of April, Poland has reduced fuel taxes and capped pump prices to protect consumers from the consequences of the Iran conflict on energy prices. Finance Minister Andrzej Domanski said on Monday that Poland will likely extend the measure until June.
Capping fuel prices costs Polish taxpayers approximately 1.6 billion zlotys (440 million dollars) per month. A liter of Eurosuper 95 gasoline averaged 1.49 euros (1.74 dollars) last week in Poland, the second-lowest price in the EU after Malta, according to the most recent data from the EU executive.
Orlen SA Group, the largest fuel distributor in Poland, stated that its total sales have not been significantly influenced by tourists coming to refuel in Poland, adding that it will provide further details after the release of first-quarter results on May 28.