700 filling stations run out of some fuel types every week in Hungary

Supply falters in hundreds of fuel stations in Hungary, many struggle with product shortage on some weekdays. Some experts say that the situation will not be solved soon. However, nobody understands why since companies keep saying they can satisfy demands.

Zsolt Hernádi, the CEO of the Central-European region’s leading oil and gas company, marked many reasons behind the faltering supply last Friday. He mentioned the limited amount of fuel, technical reasons, the war in Ukraine, unbalanced supply-demand and the price cap introduced by the government. That is why the MOL group reduced the amount of purchasable fuel to 50 litres per day. People buying more must pay the market price instead of the government-fixed 480 HUF (1.2 EUR) per litre. Austrian OMV, the second biggest retailer in Hungary, and Lukoil decided similarly later.

Experts regard the reasons of the MOL’s CEO as weird.

The government decided about the fuel price cap on February 28. As a result, fuel-import companies left the Hungarian market since their business became unprofitable. However, Zsolt Hernádi said on March 10 that there were no problems with supply. 

At the end of May, the government banned foreign cars buy fuel for the 480 HUF per litre price. Therefore, demand significantly decreased, Népszava wrote. There was no change on the supply side, as well. Thanks to the government, MOL can buy and use cheap Russian crude oil. Furthermore, the government released some of Hungary’s strategic fuel reserves to help OMV. The Austrian company has been struggling with the consequences of a blast in its Schwechat refinery.

• Read also: Hungary to release strategic fuel reserves for domestic consumption

OMV told Népszava that they faced logistical challenges. Therefore, providing fuel for their filling stations in time is still a problem for them. There was a blast in MOL’s Százhalombatta refinery on June 14. However, the company solved that by June 23. Since then, it has been operating at maximum capacity, and MOL has not asked the government for fuel reserves. Népszava says that Hungarian agriculture producers stocked a lot of diesel after the price cap panic. Thus, there is no diesel panic in Hungary.

Nevertheless, an expert estimated the number of fuel stations struggling with product shortage at least on some weekdays to 500-700.

MOL and OMV acknowledged they were short of some products in the last few weeks. However, that lasted only for hours. Ottó Grád, the Secretary-General of the Hungarian Petroleum Association, confirmed that we should expect shortages in the case of some products but gave no reason.

One of Népszava’s sources said that the real reason behind the faltering supply was simple. Because of the 480 HUF per litre price cap, sales are no longer profitable in the sector.

Read alsoNew details on the fuel limit introduced in Hungary!

Source: Népszava