Hungarian fuel stations go bankrupt en masse, supply chain in danger?
Fuel supply problems are expected to persist as fuel importers do not really feel the urge to bring fuel into the country, causing problems for quite a few other sectors, as well as gas stations.
10% of Hungarian petrol stations could go bankrupt
According to experts, the price cap sent 10% of domestic gas stations, about 200 units, into complete ruin,
and the stations in the worst financial situation will sooner or later end their business, whether they receive money from the state or not and whether the price cap for the purchase of fuel will stay or not.
Due to the wholesale fuel price cap, the wholesalers responsible for about 30% of the fuel supply withdrew from the domestic market, leaving only the Hungarian-owned MOL, writes HVG.
Other sectors are also affected by the petrol crisis – transport and agricultural problems
Another problem, in addition to the financial situation of petrol stations, is that freighters do not receive more than 100-200 litres of fuel, making it impossible to plan a longer journey.
Farmers involved in agriculture also complain that they do not have access to fuel for their machines, and although they have been given the opportunity to refuel at residential petrol stations, they also claim that filling stations close to rural, agricultural areas are particularly affected by fuel supply disruptions.
The state eventually reduced the excise tax
Last Thursday, at an unusual time, at 10:30 p.m., Gergely Gulyás, the Minister in charge of the Prime Minister’s Office, and Zsolt Hernádi, the President and CEO of MOL, announced that the government would reduce excise duty on diesel.
In any case, this provision was intended to remedy the financial problems of service stations due to the price cap, but this move does not really seem to be too effective.
The government has also made a decision to act against those who spread rumours of a gasoline supply disruption or shortage, says rtl.hu.
Petrol tourism could also cause a shortage
The representatives of carriers have repeatedly indicated that foreign carriers refuelling in Hungary should be restricted or banned, as those crossing several countries take advantage of the price cap in Hungary, refuel their trucks, causing a shortage of stocks in the current difficult situation.
This is also supported by the fact that there was a shortage of fuel, mainly diesel, at the stations near the motorways and at the border, and it later spread to other locations.
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Source: HVG, rtl.hu
4 Comments
On April 4th it is over. No more price cup because there is no need for election bribes after the elections.
I have read the above mentioned link to rtl.hu in both Hungarian and in English. The Hungarian says “járjanak el azokkal szemben” which translates as ‘act against those’. It does not say ‘megbüntetni azokat’ (meaning ‘punish those’.) This could simply mean asking people not to spread rumours. Even in Hungary, there is still some freedom of speech left, it has not fully transitioned to being like Belarus or Russia where no one dares express an opinion – yet. So this notion of people being punished for spreading a rumour (rumours are by definition is something that are spread) is an invention by the DNH. It is not what was written in rtl.hu. Gossip is a national pastime in Hungary and gossip and rumour are two sides of the same coin….. for the time being at least, gossip is still legal.
The FLOOD gates – will open post 3rd April 2022.
We know the propaganda that the capping of fuel by the present Government – its FOCUS – to gain votes.
Europe – wider Europe inclusive of the United Kingdom – then Globally – FUEL prices because of the conflict of war by Russia on the Ukraine, fuel prices MUST rise.
Think this – when Governments INTERFEAR – in pricing – is this not another example of a Government by manipulation, setting its agenda – to FAVOUR it-self – that comes back on the citizens and cost on them DEEPER – than if they, being a Government – stayed out of PRICING of Fuel ???
The capping of FUEL – the price will rapidly esculate post 3rd April – which AGAIN – will highlight the Wrongness of Government involvement – rather than letting – the MARKET – through direct dealings with Fuel suppliers – set the price of Fuel.
This – in the running of Vehicles – private & transport, public services & “others” – this “propaganda” game of capping – its going to hit HARD – the pockets of Hungarians.
NOTHING in Hungary – is getting CHEAPER and this “explosion” in price post 3rd April – will add confirmation of that FACT, not helped simple by record high Inflation, just another Financial & Economic “pain in the head” – for us all in Hungary to deal and live with.
Dear Midas, you are right, thanks for the feedback. We have changed the phrase to the one you suggested – “act against those”.