CEE NOIAs meeting
Bratislava, April 20th 2015
Leszek Wieciech
Chairman & CEO
Polish Organisation of Oil Industry and Trade
1
Main issues in 2014
 According to the official data no growth in demand for the third consecutive
year…
 Retail prices lower than 2013;
 Growth of the official import of fuels;
 Grey zone still big factor distorting the market;
 Amendment of the COS Law and Energy Law (licenses WPC & OPZ –
production of fuels and import of fuels), security fee, COS fee etc.
 Due to implementation of new technical and environment regulations
decrease in the number of filling stations;
2
14,000
13,423
13,463
Domestic fuel consumption
in 2013 and 2014 [in K m3]
Share of imported fuel in domestic consumption
Petrol
Diesel
LPG
12,000
-0%
13% versus 12% in 2013
11% versus 8% in 2013
87% versus 87% in 2013
10,000
8,000
-2%
2013
2014
4,166
4,223
4,841
6,000
4,925
-1%
4,000
527
-18%
642
998
781
676
2,000
843
-15%
+16%
0
BS
ON
Opracowano na podstawie monitoringu POPiHN
JET
LPG
LOO
COO
3
Production and official (legal) import of
fuels in 2014
PRODUCTION
14,000
K m3
4,000
12,000
3,000
2,000
1,500
2014
0
78
80
500
89
77
1,000
2013
1,065
1,457
3,151
3,378
2,500
68
39
2,000
2014
957
703
627
643
4,000
1,079
1,423
2013
597
643
5,419
5,178
6,000
tys. m3
3,500
10,000
8,000
3,691
3,630
13,110
12,796
IMPORT
0
BS
ON
LPG
JET
Changes in the domestic
production:
Petrol
-4%
Diesel
-2%
LPG
+3%
JET
+32%
LFO
-27%
HFO
+7%
Total
-1%
LOO
COO
BS
ON
LPG
JET
LOO
COO
Import
petrol – growth by 8%
diesel – groeth by 37%
Total import – growth by 6%
Total production 24,1 mln m3
Total import 5,9 mln m3
Źródło: Na bazie danych Ministerstwa Finansów i monitoringu POPiHN
4
Official import in 2014
Diesel: Holland
Diesel: UK
4%
3%
Petrol: Lithuania
15%
Diesel: Lithuania
13%
Diesel: Latvia
4%
Diesel: Latvia
17%
Diesel: Belarus 6%
Petrol: Germany 29%
Diesel: Germany 46%
Źródło: Na bazie danych Ministerstwa Finansów
i monitoringu POPiHN
Petrol: Slovakia 42%
Petrol: Hungary 8%
Diesel: Slovakia 5%
Share in market 2013 i 2014
%
90.0
80.0
84.3
78.5
80.6
76.5
70.0
60.0
2013
2014
50.0
40.0
30.0
19.4
20.0
15.7
10.0
5.8
4.1
0.0
national
companies
Źródło: Monitoring POPiHN
foreign
companies
independent
operators
POPiHN
together
6
Structure of the filling stations
2014
Stacje niezależne pozostałe
1,961
25
21
AS 24
SSS (dawne Neste)
171
116
Stacje przymarketowe
Lukoil
351
Statoil
743
Stacje w sieciach prywatnych
402
480
441
Shell
BP
Grupa LOTOS
1,768
PKN ORLEN
0
200
400
600
800
Number of sites in Poland:
2006
2007
2008
2009
2010
2011
2012
2013
6 875
6 904
6 854
6 715
6 755
6 764
6 756
6 745
30.2%
2014
6 479
11.5%
Źródło: Opracowanie POPiHN
1,000
1,200
2.6%
1,400
1,600
34.1%
1,800
2,000
national champions
foreign companies
independent
operators' networks
other independent
operators
21.6%
hypermarkets
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Share in the retail market in 2014
[in %]
2014
6.2
36.8
33.4
national champions
2013
foreign companies
independent operators
6.0
hypermarkets
35.1
34.5
23.6
24.3
Average sale at a site 3,0 mln litres
- POPiHN
3,3 mln litres
- Independent sites 2,5 mln litres
Źródło: dane z monitoringu POPiHN
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CSO
 Amendment to the Law on CSO and Energy Law – May 30th
2014:
 Implementation of the Directive 2009/119/UE;
 Introduction of CSO fee (partly replacing the CSO):
 2015 – 10%
 2017 – 30%
 Change of items covered by the CS system (now based on CEN);
 2 weeks advance notification to the Agency;
 Confirmation of storage facilities availability + CSO fee;
 Advisory Council for setting the CSO fee.
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Biofuels 2014
 Amendment to the Law on monitoring of fuel quality:
 Sustainability criteria introduced;
 New definition of diesel – everything containing over 7% of any biocomponents
is considered to be biofuel – blocking introduction to the market of advanced
biofuels. Definition not compatible with the EN 590;
 E10 allowed, E5 as protection grade till 2020.
 Amendment to the Law on biofuels:
 Closed (limited) list of biocomponents;
 No change in the mechanism of National Biofuels Target and penalties;
 HVO produced in co-processing technology not allowed.
NBT (NCW):
2015,2016 – 7,1%, 2017 – 7,8%, 2018 – 8,5%, 2020 – 10%
Tax evasion in fuels
 Since 2011 rapid growth of VAT evasion in fuel trade – mainly diesel;
 Raport prepared by Ernst & Young „Tax evasion on the Polish market of
diesel” - 2012; a supplement covering 2013/2014;
 In 2014 further growth for diesel over 20%!
 On a smaller scale it applied also to petrol, LPG, covered excise tax, CSO and
NBT;
 Losses to the state budget – min. PLN 10 bln;
 Losses to the law-obiding companies (forced export of diesel).
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Eurostat data disparities
 2014 – 10 months:
 Germany reported export to Poland 1,6 mln t versus Poland reported import
from Germany 389 K t.
 Lithuania reported export to Poland 818 K t versus Poland reported import
from Lithuania 137 K t
 Latvia reported export to Poland 233 K t versus Poland reported import from
Latvia 53 K t.
 No disparities in reporting with Czechia and Slovakia
 Total export from other EU countries to Poland – 2,8 mln t versus Poland
reported import 840 K t
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Problems with effective
addressing the issue
 Lack of co-ordination of all involved ministries and institutions;
 Lack of complex law, covering all production and distribution of liquid
fuels;
 Lack of complex data base covering production and distribution of
liquid fuels:
 Over 10% of sites operating without a licence (container sites, non-market sites)’
 Trade Inspectorate and other services controll only legal sites
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The mechanism
 VAT evasion - MTIC – missing trader intra-community)
 Also:
 Excise tax crime:
 Heating oil
 Lubricants
 Smuggling of diesel (neither excise nor VAT paid):
 Road tankers
Fuel to grey zone comes from the same directions as legal import (Germany,
Lithuania)
14
2014 – increase in state
control institutions’ activity
 Agreement of January 30th 2014 – Ministry of Finance, Ministry of
Interior and Chief Prosecutor – cooperation on fighting „white collars”
crime, including tax evasion;
 A „warning letter” published in November by the Minister of Finance and
the Minister of Economy;
 Regular, coordinated control actions at the borders;
 In 2014 - the MF disclosed tax evasion in fuels of the value PLN 3 bilion!
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Good direction of law changes
 May 30th 2014 – Amendment to the Law on CSO and Energy Law:
 Security deposit for entities, importing and exporting fuels
(license OPZ); new license for production of liquid fuels (WPC);
 Change in the CSO system – which would help in fighting tax
evasion.
 Technical Supervision Office eliminated from the market appr. 10%
of fuel tanks, not fulfilling environmental regulations.
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What else should be done?
 Establishing a special co-ordinator at the level of the PM Chancery;
 Creation of a complex data base – „fuel platform”
 Access for police and tax authorities;
 Access for other state agencies;
 Access to the public.
 Special regulations in public tenders for fuels;
 Ban on virtual offices for companies operating in fuel sector;
 Changes in VAT system (split payment, the central register of VAT)?
 Changes in responsibility of private persons (versus companies) – it should be in the
Penal Code and not in the Offences Code;
 Limiting the cash payment in transactions (currently EUR K 15)
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Polska Organizacja Przemysłu i Handlu Naftowego
www.popihn.pl
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