This is a political price, not an economic price – commented Professor Jerzy Hausner, chairman of the Open Eyes Economy Summit Program Council, GAP Foundation, former deputy prime minister, on the reduction of fuel prices by Orlen in the “Fakty po Faktach” program. – Price interference, including price manipulation, is something we are experiencing more and more often – he added.
The guest of the “Fakty po Faktach” program was Jerzy Hausner, chairman of the Program Council of the Open Eyes Economy Summit, GAP Foundation, former deputy prime minister. He was asked about the situation on the fuel market – since the beginning of September, Orlen has reduced wholesale prices of Pb 95 gasoline fifteen times and diesel oil by about the same amount.
According to Hausner, is this an artificially low price with a political motive? – This is a political price, not an economic price – he said.
– This is obvious. We are dealing with something temporary that has consequences because we already feel it. If a state monopoly can do this, it can also do the other way around. This means that the market price formation mechanism is disrupted. And this is not the only case, because price interference and price manipulation are something we experience more and more often, he noted.
In Hausner’s opinion, the long-term consequences of this action are serious,
– If the market mechanism is broken, the economic credibility of the state obviously weakens. Secondly, the mechanism that was an important element stimulating our growth, providing us with economic improvement and economic development, will simply no longer fulfill this function to such an extent, he noted.
Inflation in Poland: it is artificially low, but it will show its strength
Prof. Hausner also referred to the words of Adam Glapiński, president of the National Bank of Poland, who said that “we are done with the threat of inflation.”
– We have according to data from the Central Statistical Office inflation at 10 percent. Probably also due to price interference and price manipulation, for example by reducing electricity bills retroactively by 12 percent – said the former deputy prime minister.
He noted that “if the Central Statistical Office takes this into account, it will probably announce at the end of September that inflation has dropped below 9 percent.”
– Perhaps even up to 8.5 percent. Of course, someone will say “improvement”. I will say that not necessarily, he emphasized.
In his opinion, “if we fight inflation in such ways, it means that it is artificially low, but it will show its strength.”
– I am not saying that it will grow, but disinflation, i.e. reducing the 2.5 percent target of the National Bank of Poland, will last, according to my assessment and that of economists, at least until 2026 – he predicted.
He noted that “with this policy, we will have clearly increased inflation, which does not correspond to the conditions and requirements for stabilizing the value of money.”
When asked how to shorten this time, he replied that “it would require quite significant changes in economic policy, which are not easy to implement.”
– Including failing to make a decision regarding interest rates, which do not correspond to economic realities. This reduction, which was made by the National Bank of Poland, does not correspond to the actual assessment of the situation, also in the NBP documents. It was not a justified inflation forecast, he explained.
He added that “maybe we will see another reduction in October.” – This will be a political calculation again – he said.
Main photo source: TVN24