Breaking news! Orbán cabinet scraps the fuel price cap with immediate effect!
In view of the recent crisis, the Hungarian government will remove the HUF 480 (EUR 1,17) price cap from Hungarian petrol stations, Gergely Gulyás, Minister of the Prime Minister’s Office, and Zsolt Hernádi, CEO of Mol, announced on Tuesday evening.
The fuel shortage has been growing in recent days at Hungarian petrol stations, with queues snaking near filling stations across the country. Mol said earlier it was seeing the effects of panic buying, but said it could not import more fuel from abroad because of the price cap.
Hungary has been exempted from the EU oil sanctions against Russia, but as Hungary relies on imports, we are also affected, as we can buy fuel from Europe at a higher price, Gulyás said. Petrol prices have skyrocketed because the EU reacted to Russian aggression with sanctions, he said.
The abolition of the price cap will raise inflation, the government expected, the minister said.
According to Hernádi, the sanctions created a situation in Europe that led to the introduction of a price cap in Hungary. But the barrier cap is now dysfunctional rather than functioning well. This decision has gone to the point where it was manageable with a mast. The whole European petrol market has been badly affected by the sanctions, he says.
According to Hernádi, a normalised supply situation can be achieved within one to one and a half months. Panic buying will end at 23:00 today, but it will take a few weeks before importers are back to the old system.
The Mol boss expects the abolition of the price cap to bring a noticeable improvement quickly.
According to Hernádi, the target price for Mol stations is 641 HUF (EUR 1,56)/liter for petrol and 699 HUF (EUR 1,70) /liter for diesel.
Two minutes after Gergely Gulyás announced the end of the petrol price freeze, the relevant gazette was published, stating that the regulation enter into force at 23:00.
Read alsoMOL restarts Dunai refinery, but still a long way from the end of petrol chaos in Hungary
“The implementation of the sanctions has caused tangible disruptions to Hungary’s energy supplies,” Gulyás said.
MOL said in a letter to the energy minister on Monday that it would be unable to ensure supplies without imports, he said.
The company’s chief executive Zsolt Hernádi said a quarter of station pumps had run dry at some point in the past few days, an unprecedented occurrence during MOL’s existence.
What about the other price caps?
“Are there shortages of milk and sugar, will they be eliminated?” asked RTL.
If the shortage becomes general, then it should be phased out. If only 1% have a deficit, it is worth maintaining, if it causes national difficulties, it should be removed.
The government is monitoring the situation for all products, Gulyás said.
Source: Telex, Index, hvg
11 Comments
The price cap in Hungary started in 2021 October, sanctions started in 2022 April. So Hernadi and the FIDESZ government should stop lying to the people.
@Attila, 👏
I’d like to suggest that one of the reasons (perhaps the biggest reason) is that Viktor Orbán wants to inflame Hungarian motorists against the EU.
“In view of the recent crisis”, will this (“crisis”) be yet another reason for Orbán to extend his rule by decree?
Set the VAT to 1% until Putin’s war of aggression is over, and put a 27% Tax on the wealth(not income, but wealth) of the 10 to 20 richest Hungarians. Let them pitch in for a change.
Hungarians we are the BIGGEST Losers – in the on-going destructive style of this “Dictatorial” Victor Orban Government.
Orban continues to BUILD massive fires of ANGER against Hungary.
We the people MUST act as it is this Government that continues to SHAME and Destroy us.
Fed up! – totally correct, moving RAPIDLY in the direction to ESCALATE – the use of Rule by Decree.
The undertakings direction Politically of this Government exhibits they KNOW they are an isolated Government – an ABANDONED Government by the EU and destroyed friendships with countries that Hungary has held for “distance in time”.
We are SUFFERING as Citizens and as a country – that our reputation is just being OBLIVIATED by Victor Orban and his Government – that greater emphasis and reliably will move in relationships with our only (2) two friends being Russia & China – Dictatorships.
Watch the Fidesz/Government – Propaganda machine.
Watch what comes out of global opinions from countries on Hungary’s – BEHAVIOUR and the on-going downside and path that Victor Orban takes Hungary.
Price caps on food are also causing inflation, as the food markets compensate by increasing prices of other items.
The article says manageable with a mast. What have boats got to do with it?
So, our Politicians are at last acknowledging that price controls distort the working of the markets?
https://www.investopedia.com/terms/p/price-controls.asp
“… controls are only effective on an extremely short-term basis”
“Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and illegal markets”
This is all to Brussels idea to start a not winnable war, the USA wants to destroy Europe, and sofar they bare winning.Hope not for long that bthe fake president and his corrupt government are removed from their temporary jobs.
@Tony – I believe Russia invaded Ukraine? Also – Mr. Trump lost the election. Democracy for you!
27% VAT fuel, Electricity, Gas, Water….if Orban really wants to lower the price he can by cutting the VAT, but he doesn’t, he just wants to blame the EU for everything.