Hungarian oil and gas company MOL has backed the government’s new diesel support scheme but warned that reintroducing a fuel price freeze could lead to petrol and diesel shortages within days.
The company said the monthly HUF 5,000 (EUR 13.76) support announced by the government was a better solution than restoring the previous regulated fuel price, as it provides targeted help to consumer groups most affected by rising diesel costs without discouraging fuel imports.
Price freeze could hit imports
According to MOL, bringing back a protected fuel price would immediately reduce imports because suppliers could no longer operate profitably at the artificially lower domestic prices. The company warned that this could result in petrol and diesel shortages within just a few days. MOL said the international fuel market has also become increasingly fragile. Conflict around the Strait of Hormuz and Ukrainian attacks on Russian energy infrastructure have contributed to tighter global supplies.
Based on July figures, MOL said global diesel exports were 21% lower than a year earlier, while petrol exports had fallen by 14%. Diesel deliveries from India and Turkey to the European Union have also declined, partly because of EU restrictions on products made from Russian crude. Lower water levels on important transport routes are creating an additional challenge, making it more difficult to move imported fuel into the interior of Europe, quotes Blikk.
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Diesel demand set to rise
MOL also expects demand for diesel across Europe to increase significantly over the coming weeks, as the continent enters one of its strongest seasonal consumption periods. The company said the next two months are likely to bring particularly high demand at a time when supply is already constrained. The pressure is reflected in international prices. MOL reported that on 8 September, the global oil price was 53% higher, while the European diesel price was 89% higher than before the outbreak of the Iran war.
The company said maintaining a stable domestic fuel supply and ensuring continuous imports are therefore among its main priorities. Despite increasingly limited availability on international markets, Hungary has so far avoided fuel shortages.
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MOL offers temporary premium fuel discount
MOL CEO Zsolt Hernádi and other company executives were recently invited to a government meeting to discuss how fuel prices could be contained without creating shortages or imposing an additional HUF 50–100 billion monthly burden on the state budget. Following the meeting, MOL announced a temporary HUF 35-per-litre discount on its EVO Plus premium fuels for customers using the MOL Move app and an eligible discount coupon.
The promotion is available during three weekends: 10–13 September, 17–20 September and 24–27 September. MOL said Hungarian retail fuel prices remain below the EU average, but argued that domestic prices must remain broadly aligned with those in neighbouring countries. If Hungarian fuel becomes significantly cheaper than the regional market, importers may no longer find it profitable to bring fuel into the country.
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