The trend of consolidating independent gas stations around larger market players, the increase in diesel consumption, and a clear rise in prices at stations – these were the phenomena that dominated the Polish fuel market last year, according to a report on this market published in the FLEET monthly magazine.
For years, there has been a noticeable steady trend of increasing fuel consumption by the Polish economy. Last year, the national GDP grew by 4%, which translated into a growth in liquid fuel sales of approximately 1%. Demand for diesel oils and premium fuels is growing in particular, while the demand for motor gasolines remains at a constant level. High fuel prices are slowly influencing a renaissance of interest in LPG.
Over the decade, liquid fuel consumption in Poland has increased by 48% – from 13,545 thousand tons to 19,987 thousand tons last year. Interestingly, in four voivodeships: Masovian, Silesian, Greater Poland, and Lower Silesian, approximately 49% of all fuels in Poland were sold last year. Every sixth liter of fuel was refueled into cars in the Masovian Voivodeship.
Fuel prices have remained in a sustained upward trend for two years. Average retail prices for EU95 gasoline and diesel oil increased last year by an average of 10% (42 gr/l) and 17% (61 gr/l) respectively, compared to 2009. This also meant a reduction in the price difference between diesel oil and gasoline from 47 gr to 28 gr. At the same time, the average retail price of autogas increased by 21%, to 2.22 PLN/l. Last year, a driver refueling 100 liters of fuel per month spent on average 504 PLN more per year on EU95 gasoline than the year before. In the case of diesel oil and autogas, these expenses increased by 732 PLN and 456 PLN, respectively.
Distributors have minimal influence on the final price of fuel at gas stations. Their margins account for only about 5% of the price of a liter of fuel in retail sales. The price of fuel is fundamentally influenced by the state’s tax policy and the situation on global commodity and financial markets.
Domestic concerns supplied 75.6% of all fuels sold in Poland last year. Independent operators reduced their share in fuel supplies to 13.6% (14.3% the year before). Conversely, the market share of foreign concerns increased slightly, from 10.2% in 2009 to 10.8% in 2010.
Last year, there were 6,755 gas stations for retail customers operating on the Polish market, which is 40 facilities more than the year before. Among them, independent stations held a dominant position – 2,658 facilities. From year to year, a decline in the number of such stations is visible, as they are increasingly willing to join small chains or start cooperating with leading market players on a franchise basis. As recently as 2008, there were 2,929 independent operators and 421 facilities operating within small chains in Poland. The largest fuel distributor in Poland – PKN Orlen – reduced the number of its facilities by 33 over the year, to 1,714 facilities. However, every fourth gas station in Poland still belongs to this company.
The complete report – “FUEL MARKET 2010” is available for download at www.fleet.com.pl/raport