Poland is the largest national market for oil products in the CEE region and is one of few remaining growth markets in Europe. Most of the demand growth has come from the road diesel segment, resulting in a widening middle distillate deficit and an increasing requirement for imports. The downstream sector is fully liberalised with oil product prices set according to free market forces. But the industry structure is characterised by the dominance of the two domestic refiners, PKN ORLEN and Grupa LOTOS. The latter has been investing in its Gdansk refinery, with a new Delayed Coking Unit (DCU) completed in mid-2019. The European Commission is investigating a proposed merger of these two companies. The deal could see the market become highly concentrated, as the new entity would be a monopoly refiner with dominance over the fuels market. More stringent environmental regulations around service stations has led to continued consolidation of smaller independent fuel retailers in Poland.