The increase in line materials and energy in 2022 resulted mainly from the inclusion of the costs of the former Grupa LOTOS and Grupa PGNIG in the amount of PLN (27,966) million PLN and the increase in the prices of basic raw materials and energy as a result of the ongoing Russian-Ukrainian war.

The increase in the value of cost of merchandise and raw materials sold by PLN (17,476) million is mainly the result of an increase in the quotation of finished products in 2022, which translated into an increase in prices and the recognition of new entities in the consolidation of the ORLEN Group.

In the line cost gas comprises the cost of gas purchased on gas exchanges and from trading partners. The cost of purchased gas includes a reasonable portion of costs of system and transaction charges, costs of domestically produced gas, as well as costs of nitrogen rejection and regasification.

The increase in taxes and charges in 2022 by PLN (2,566) million resulted mainly from the revaluation of the provision for the estimated costs of CO₂ emissions for 2021 and the recognition of a provision for the estimated costs of CO₂ emissions for 2022 taking into account the settlement of the grant for entitlements received free of charge for the year in the total amount of PLN (4,559) million compared to PLN (3,119) million in the corresponding period of 2021. The higher costs of creating and updating the provision for 2022 were influenced by both the higher weighted average price of the CO₂ rights held, resulting from the acquisition of CO₂ rights under the term contracts held by the Group, as well as the fact that for the estimated emissions of some not covered by the rights held as at the reporting date, the value of the provision was calculated based on market prices.

In line Cost of products and services for own use and other, the Group presented the value of finished goods purchased as part of the merger with Grupa LOTOS S.A. in the amount of PLN (2,608) million.

Impact of new entities on cost by nature