ORLEN Unipetrol, the refining and petrochemical group, is responding to the government-approved proposal for an extraordinary sector tax on the refining industry. The company, which forms part of the country's critical infrastructure and is one of the pillars of the Czech economy, warns that the proposed tax structure would significantly undermine its ability to invest in the modernization and development of its refineries and slow down its ongoing transformation. As a result, the stability of fuel supplies in the Czech Republic, as well as the country's economic and energy security, could be jeopardized at a time of heightened geopolitical tensions. The proposal also raises serious constitutional concerns, particularly due to its retroactive effects and the fact that it applies to only a single company in the Czech Republic.
The government has approved a tax of 50% on the increase in gross refining margin compared with 2025, applicable in 2026 and 2027. The Ministry of Finance expects the measure to generate approximately CZK 5.5 billion in revenue in 2026. The measure is targeted at a single company, the refining and petrochemical group ORLEN Unipetrol.
"Based on our analysis, we are convinced that the proposal in its current form raises serious doubts about its compliance with the constitutional framework of the Czech Republic. The tax is being proposed only at the end of the year whose economic results are intended to serve as the basis for its calculation. It therefore fundamentally changes the economic and tax conditions at a time when investment, commercial and operational decisions have already been made. Such an approach may be inconsistent with the principles of legal certainty and the prohibition of retroactivity, both of which are fundamental principles of a democratic state governed by the rule of law. Moreover, it arbitrarily targets only one company. This creates a precedent that could in the future affect other businesses that find themselves in a similar situation," says Mariusz Wnuk, Chief Executive Officer and Chairman of the Board of Directors of the ORLEN Unipetrol Group.
The ORLEN Unipetrol Group is undergoing a major transformation towards a low-emission and carbon-neutral future while preparing to comply with stringent EU regulatory requirements. Since ORLEN acquired full ownership of the Group in 2018, ORLEN Unipetrol has invested an average of CZK 10 billion annually in operational safety, environmental improvements, energy efficiency and the modernization of production technologies. At the same time, in recent years the company has had to cope with an unprecedented geopolitical and macroeconomic environment that has severely undermined the competitiveness of the European chemical industry, including the Czech sector.
Every billion Czech crowns paid under the extraordinary tax will be unavailable for refinery modernization, operational safety improvements and decarbonization projects. These investments are essential for maintaining operations and competitiveness and are critical to the stability of the Czech fuel market and the country's energy security.
“Gross refining margin is not net profit. It must cover energy costs, emission allowances, employees, maintenance, logistics, depreciation and multi-billion-crown investments. The refining business operates in cycles of stronger and weaker market conditions. Over the past two years, we have gone through an exceptionally challenging period marked by recurring multi-billion-crown losses. Every billion Czech crowns paid under the extraordinary tax will be a billion unavailable for refinery modernization, operational safety improvements and decarbonization projects. These investments are essential to meet stringent European Union emissions requirements and to maintain our competitiveness. Only by continuing them will we be able to support the Czech economy and contribute to the country's energy security through stable fuel supplies,” says Mariusz Wnuk.
Furthermore, ORLEN Unipetrol does not transfer its earnings abroad; instead, it reinvests them in the Czech economy. “Since ORLEN acquired full ownership of the ORLEN Unipetrol Group in 2018, the ORLEN Group has not received any dividend payments. All funds generated have been used for the modernization, development and transformation of Czech refineries. These investments continue to support the Czech economy. The funds flow to our suppliers and subcontractors, helping to create jobs and prosperity not only in the regions where we operate. We do not believe that weakening the long-term investment capacity of a company that forms part of the country's critical infrastructure during a period of geopolitical uncertainty for the sake of a short-term fiscal benefit is the right solution,” concludes Mariusz Wnuk.
The ORLEN Unipetrol Group is the largest refining and petrochemical company in the Czech Republic. It focuses on oil processing and the production, distribution, and sale of fuels and petrochemical products, particularly plastics and fertilizers. It is a major player in all these areas on the Czech and Central European markets. The ORLEN Unipetrol Group includes refineries and production plants in Litvínov and Kralupy nad Vltavou, Paramo in Pardubice, Spolana in Neratovice, REMAQ in Otrokovice, research center in Brno and the engineering design company ORLEN Projekt. ORLEN Unipetrol also owns the ORLEN network of petrol stations in the Czech Republic, Slovakia, and Hungary. ORLEN Unipetrol is one of the largest companies in the Czech Republic in terms of turnover. It employs over 3,500 people. ORLEN Unipetrol is also a socially responsible company, particularly in the areas of sustainable development, education, local communities, and the environment. A testament to the high quality of employee care is the prestigious international Top Employer certification, which the Group received in 2023, 2024 and 2025, along with several national awards. In 2005, ORLEN Unipetrol became part of the ORLEN Group, the largest energy company in Central Europe.
Contact: Pavel Kaidl,
spokesperson, telephone: +420 736 502 520, e-mail: pavel.kaidl@orlenunipetrol.cz