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    May Sees Sharp Drop in Fuel Prices

    New data indicates fuel prices will be dropping at stations this May weekend. On Friday, February 28th, Orlen reduced prices for the second time in a short period of time, and other retailers have since followed suit. Optimistic forecasts for the upcoming weeks suggest the trend will continue.

    These reductions have already appeared – at stations in Silesia, 95 bp petrol is cheaper than before the previous weekend – even at 6.50 per litre, and the average is 6.71-6.83 PLN/l – while diesel costs 6.50-6.65 PLN/l. Prices should continue to fall because, as BM Reflex experts remind us, the price of the June series of Brent crude oil contracts ended the week with a near five-dollar drop.

    Last Friday morning, Brent crude oil cost just under $81 per barrel and is the cheapest since the end of March this year.

    Prices for Russian Urals crude FOB Rotterdam fell again to around $55 per barrel, BM Reflex analysts calculated. Diesel and fuel oil stocks on the European ARA market fell for another week in a row, but are 64% higher than a year ago. Diesel imports, following the end of the oil workers’ strikes, were increased by France, which remains the world’s largest importer of this fuel.

    Sharp drop in fuel prices

    Since the beginning of this week, oil prices on the New York Stock Exchange have been falling in response to the uncertain outlook for demand for crude and its products. A barrel of West Texas Intermediate crude for June delivery on the NYMEX in New York costs USD 78.53, down by 0.29 per cent. Brent crude on the ICE for June delivery is priced at USD 82.46 per barrel, down by 0.33 per cent. Demand for Russian oil is also falling, and only increased exports to China are saving Russian companies.

    PKN Orlen CEO Daniel Obajtek stresses that the company’s pricing policy takes into account reductions in global markets – in seven days PKN Orlen reduced the price of diesel by PLN 0.25 and petrol by PLN 0.12 gr. As a result, the average price of petrol at PKN Orlen dropped to PLN 6.70 and diesel to PLN 6.49.

    Others have followed in the footsteps of the Polish company, with petrol, diesel and LPG prices being reduced by min: Lotos, Moya, BP, Shell, Circle K.

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