Poland shifts LPG imports away from Russia amid production gaps

Reports from the Energy Regulatory Office (URE) and the Polish Liquefied Gas Association (POGP) highlight significant shifts in Poland's fuel and LPG markets for 2025. Domestic production of diesel and LPG is insufficient to meet national demand, necessitating increased imports. While diesel production reached 9.99 million m³, imports totaled 9.14 million m³. In the LPG sector, imports of 2.37 million tons more than doubled the domestic production of 1.09 million tons.

A major structural change occurred in the LPG market due to sanctions on Russian imports. The share of Russian LPG in Poland's total imports dropped from 44% to approximately 13%. New primary suppliers have emerged, with Sweden, the USA, and Norway taking leading roles. Despite initial concerns regarding supply stability and price fluctuations, the market has stabilized, and supply levels remained sufficient to meet a total national consumption of 2.45 million tons of LPG.

Additionally, the URE reported a decline in the number of entities holding liquid fuel trading licenses, falling to 5,141 by the end of 2025. This trend is attributed to stricter regulations and the expiration or revocation of licenses. The fuel market's shadow economy remains relatively low at approximately 4%, though the state lost roughly 2.5 billion PLN in unpaid diesel taxes.