Tuesday 1 September 2015

Polish Oil and Gas Group introduces the second gas price cut in 2015

Starting today (September 1, 2015) Polish Oil and Gas Company ( in Polish: PGNiG ) has introduced reduction of natural gas (with high calorific value) prices. The price cut is equal to 6.5% of raw material (the price cut is applicable only for the gas itself, not “total gas bill”) for retail customers and small and medium-sized businesses. This is the second reduction of price for private customers this year and the third for wholesale clients.
Until now, the cumulative reduction of gas price in 2015 counted to a little bit more than 8 percent for retail customers and 15.2 percent for wholesale customers, excluding discount programs. In contrast, the cumulative reduction of nitrogen-rich gas prices amounted to 1.9-3.3 percent for retail customers and 9.2 percent for wholesale customers.

The final level of reductions in the price of gas will be equal to about 4 percent, due to the fact that the other components of the total price will not change - said Thomas Bukowski, the spokesperson of the Polish Oil and Gas Company’s division dedicated to sales.

The other components of the total gas bill are subscription fee and the fee for delivery of gas. Taking into account the variation of prices and fees in different tariff groups, the decline in total payments for the delivery of gas (including the price of gas, distribution fees and subscription) will be on average equal to 4.5 percent for methane natural gas and 1.9 percent for nitrogen-rich gas.

PGNiG’s decision about the reduction of price of gas was directed by the decline in gas prices on the Polish Power Exchange as well as a desire to maintain strong competitive position and defend company’s market share.

New prices have been confirmed by the Energy Regulatory Office (URE) and will be applied for the next four months (until the end of December 2015).