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New fuel price cap on horizon in Hungary? Brutal fuel shortages could be coming
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The Hungarian government does not categorically rule out reintroducing a fuel price freeze if gasoline prices from Ukraine continue to rise. Experts agreed that this would be a particularly bad idea. It would lead petrol shortage within weeks, as it was last seen at the end of 2022.
Nine months ago, Chancellery Minister Gergely Gulyás and MOL CEO Zsolt Hernádi announced that the 14-month-long gasoline price freeze would end the following day. The price of HUF 480 (EUR 1.23) per litre applied to hardly anyone at the time. Since the end of the summer, it had not even been available for company cars or agricultural machinery. Pénzcentrum asked experts and key players in the market about the future possibilities.
Can fuel price caps be introduced again?
The Minister for Economic Development convened with industry representatives to debate the government’s plans on the cost of fuel and how to proceed following the steep increase. If the rise of fuel costs due to transit fares is considerable enough, the government shall step in, and he did not outright reject the idea of a petrol price freeze.
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Ottó Grád, Secretary General of the Hungarian Petroleum Association, said negotiations to reintroduce the gasoline price freeze are underway. He completely rejects any form of introduction and advocates for a different approach. However, it is not yet clear what the most suitable strategy would be for everyone.
“It was disclosed during the meeting that the government is considering reintroducing the gasoline price freeze, but I cannot provide further information. The Hungarian Petroleum Association aims to prevent this reintroduction, and we are exerting all possible efforts toward that end. We aim to find the best possible solution that benefits the economy, the oil industry, and consumers as a whole, but the details are yet to be determined.