Petrol Prices Lure EU Tourists to Cheapest Fuel Destinations

Polish Fuel Price Cap Attracts Cross-Border Drivers

The Polish government's program to cap fuel prices at the pump has become a magnet for drivers from neighboring countries, drawing them to fill up with some of the cheapest petrol in the European Union.

According to economists at PKO Bank Polski SA, the country's largest lender, the trend was first spotted after Polish retail sales figures on Monday showed a 13.4% constant-price rise in fuels in April compared to March. This data contradicts the bank's own data, which revealed virtually unchanged personal-card transactions at filling stations last month. The economists, led by Piotr Bujak, attributed the fuel-sales jump to increased demand from businesses or foreign entities, noting that PKO customers' card spending at gas stations remained stable in this period.

Poland's decision to cut taxes on fuels and introduce a daily cap on prices at the pump, which was implemented from the start of April, appears to have had a significant impact. The policy, which is set to shield consumers from the energy-price fallout of the war in Iran, is expected to be extended into June, according to Finance Minister Andrzej Domanski.

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The policy costs the Polish taxpayer an estimated 1.6 billion zloty ($440 million) per month. A liter of Eurosuper 95 petrol cost an average of €1.49 ($1.74) last week, making it the cheapest in the 27-member EU after Malta, according to the latest data from the bloc's executive.

Orlen SA, Poland's largest fuel retailer, stated that its overall sales have not been significantly impacted by petrol tourists. The company will discuss trends in more detail after publishing its first-quarter results on May 28.