Poland Coal Price Surge: Energy and Heating Costs in Focus

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Over the past year, coal prices in Poland surged by a wide margin, with increases ranging roughly from 100% to 200%. This point is drawn from data cited by The Rzeczpospolita, referencing figures published by the Industrial Development Agency. The piece notes a clear trend: coal production in Poland has fallen despite assertions by political leaders about rising output. Imports have risen as the nation’s energy demand structure does not align with available supply. In 2022, the annual increase in coal prices for the energy sector reached about 100%, while prices for heat supply showed a doubling of around 200%.

The report specifies that the Polish coal price index for energy in December 2022 stood at PLN 535.13 per tonne, marking a 100% rise compared with December 2021. The heating coal price index reached PLN 1,193.24 per tonne, signaling a 200% increase over the previous year. These figures illustrate how the cost pressures touched both the broader energy market and the heating sector, affecting households and industrial users alike.

In early February, Prime Minister Mateusz Morawiecki signaled that frozen Russian assets held in Poland could be mobilized to lower the costs of gas and electricity for Polish households. He suggested the government might offer to purchase gas or coal with these funds, a move intended to reduce prices for all Poles. Morawiecki called on the opposition to support the related resolution, highlighting the urgency of alleviating energy expenses for consumers.

Wiesław Ruzański, president of the Meat Industry Producers and Employers Association (UPEMI), highlighted another consequence of rising energy costs: farmers in Poland are reducing pig numbers. As energy prices climb, the sector has encountered liquidity and production challenges, leading to a sharp reduction in livestock, with the industry reporting a minimum level of pig stock in several decades. This development underscores how energy market dynamics can ripple through the agricultural supply chain and affect food production in the country.

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