The global economic crisis did not spare fuel markets, where sales dropped mainly due to lower transport needs. Lower petrol consumption was also recorded in Poland: sales in the period from 2006 to 2011 decreased by approximately 8%. Drop in consumption of petrol in favour of diesel oil is a trend which has been observed for many years on the European market. This trend is expected to continue in subsequent years.
The Polish LPG market was the fastest growing market in the world. From the introduction to sales of LPG used as automotive fuel until 2005 there was an upward trend in sales of this fuel. From 2005 there has been a slowdown in the growth trend, reasons for which should be sought primarily in the excise tax increases in 2004 and 2005, and in saturation of the market at that time with vehicles equipped with LPG systems. The volume of consumption of LPG in Poland is falling year on year. Although a slight post-crisis rebound was observed in 2010, generally there was a drop in consumption of this fuel by 10% in 2006 – 2011. This trend is expected to continue in subsequent years. Increase of tax burdens in the case of this fuel is so realistic that it largely prevents vehicle owners from investing in new LPG systems. New proposals of the European Commission regarding taxation of fuel constitute another factor that may significantly restrict this market. By 2020 sales are projected to decrease by 22%.
Light heating oil is the type of fuel whose consumption is decreasing at the fastest pace. There was an over 38% drop in the years 2006 – 2011. Restrictive policy regarding the use of this fuel for traction purposes and the growing use of other energy sources for heating purposes at relatively lower prices contributed to this situation. According to forecasts, downward trend is expected to continue in subsequent years.
The aviation fuel market is developing very dynamically. This results mainly from increased demand for air transport, both passenger and freight, necessitated by globalisation, but also easier and cheaper access to multiple connections. According to data from the Civil Aviation Office passenger traffic at Polish airports increased from 8.8 million passengers handled in 2004 to 21.7 million in 2011. This represents an increase by 147%. Other European countries also show positive dynamics, and according to forecasts the global passenger traffic will increase on average by 5.1% per annum until 2030. Whereas air freight transport is expected to grow at the level of 5.6% on a yearly average. This signifies an increase of the air transport market by about 2% above the world GDP.
The European market is characterised by a continuous demand for heavy heating oil. On land, heating oil is being replaced by more environmentally friendly natural gas, however this decrease is partially offset by increased demand for bunker fuel. Maritime transport supports the largest share of international trade in goods. It is estimated that in terms of cargo volume about 75% of world trade in goods is carried out with its use. At the same time, a continuous increase of demand for this type of transport is observed. However, major changes in the structure of this fuel are expected to occur due to provisions regarding exhaust gas emission. The volume of sales of heavy heating oil with sulphur content up to 3.5% will be decreasing year on year in favour of fuel with sulphur content below 0.5%.
In 2011, ORLEN Group conducted wholesale of refinery products mainly on the territory of Poland, the Czech Republic, Germany, Slovakia, Lithuania, Latvia, Estonia and Ukraine, and by sea mainly on the American market. In 2011, the refinery segment provided 65% of total sales of ORLEN Group, retail share was 20.7%, and petrochemical segment covered the remaining 14.3% of total sales.
ORLEN Group reported in 2011 sales in the fuel segment of about 15.6 million tonnes, which means an increase by almost 1% (approximately 110,000 tonnes) as compared to 2010. Sales increase was mainly influenced by increase of 4%, i.e. by over 345,000 tonnes of diesel oil sales. Petrol and light heating oil sales decrease by 4% and 17% results from decreasing consumption of these fuels.
ORLEN Group refinery products sales volume on local markets in 2010 – 2011 (‘000 tonnes)
|Poland||Czech Republic||Lithuania||Total||Poland||Czech Republic||Lithuania||Total|
|Petrol||1 551||632||2 783||4 966||1 323||659||2 770||4 752|
|Diesel||4 027||1 483||2 909||8 419||3 853||1 497||3 414||8 764|
|Light heating oil||792||54||1||847||648||46||9||703|
|Total – fuels||7 098||2 341||6 048||15 487||6 614||2 360||6 621||15 595|
|Other refinery products|
|Bitumen||721||255||113||1 089||794||236||129||1 159|
|Heavy heating oil||1 166||144||1 559||2 869||1 442||114||1 613||3 169|
|Other||2 652||106||88||2 846||2 788||86||77||2 951|
|Total – other||4 624||548||1 760||6 932||5 127||492||1 819||7 438|
|Total||11 722||2 889||7 808||22 419||11 741||2 852||8 440||23 033|
In 2011, total wholesale of other refinery products in ORLEN Group amounted to almost 7.5 million tonnes. This result was by over 7% higher than the one achieved in 2010. The biggest increases were reported in the segment of oils, whose sales increased by over 24% and heavy heating oil – increase in sales by over 10% as compared to 2010. Whereas bitumen sales grew by over 6% in relation to 2010.
ORLEN Group's brands