Petrol prices soar again amid Ukraine conflict

Darek Delmanowicz/PAP

The prices of petrol and diesel are yet again getting close to the PLN 6 (EUR 1.26) per litre mark despite reduced taxes as the war in Ukraine pushes oil prices well above USD 100 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 5.20-5.30 (EUR 1.09-1.11) per litre. A month later, the positive effects have practically disappeared as Russia's attack on Ukraine sent oil prices to new highs.

Basic petrol went up to PLN 5.87 (EUR 1.23) and basic diesel to PLN 5.92 (EUR 1.24) per litre on Wednesday, the website has reported.

"The outbreak of war, which sent Brent crude above USD 100 per barrel and several-hundred-zloty increases on the wholesale market in Poland, have resulted in significantly higher prices being paid by Polish drivers at petrol stations," said.

The zloty has fallen by about 7-8 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.