Expensive oil, falling zloty push Polish petrol prices to new highs

Darek Delmanowicz/PAP

The prices of petrol and diesel have risen once again above the PLN 6 (EUR 1.24) per litre mark despite reduced taxes as the war in Ukraine pushes oil prices well over USD 110 a barrel and the Polish zloty takes a nosedive.

The government slashed taxes on fuel in February in a bid to rein in inflation and the move brought prices of basic petrol and diesel to the range of PLN 5.20-5.30 (EUR 1.07-1.09) per litre. A month later, the positive effects have disappeared and fuel prices have reached new highs as Russia's attack on Ukraine sent oil prices to levels last seen in 2012.

Basic petrol is expected to go up to PLN 6.33-6.49 (EUR 1.31-1.34) per litre and basic diesel to PLN 6.83-6.96 (EUR 1.41-1.43) per litre next week, the e-petrol.pl website has reported.

Wholesale prices have gone up "dramatically" in recent days, with hikes often exceeding 10 percent compared to just a week before, according to e-petrol.pl.

The zloty has fallen by more than 10 percent against the US dollar over the past month as investors have been reducing involvement in Central and Eastern European markets in favour safe-haven currencies and assets.