Excise tax hike in 2007 will not impact Lotos' revenues CEO Pawel Olechnowicz said on Wednesday. According to him, revenues in 2007should be similar to those in 2006, because fuel demand won't decrease.
Our view: Mr Olechnowicz’ view is in line with our forecast. Price sensitivity of fuel demand is certainly very low in CEE, however, income sensitivity might be more significant. Until CEE economies are booming by 4-5%, we do not see any major decline in the 6-9% annual growth of fuel demand.