Hungary will no longer regulate fuel prices for companies

Hungary has decided to cut eligibility for capped fuel and raise taxes on oil group MOL’s windfall profits, Reuters reported, in the latest moves by the Budapest government to deal with a cost-of-living crisis and mounting pressure on public finances.

Viktor Orbán, Prime Minister of HungaryPhoto: ATTILA KISBENEDEK / AFP / Profimedia

According to an announcement by Prime Minister Viktor Orbán’s chief of staff Jerkely Gulyas on Saturday, the new measures will limit eligibility for fixed-price gasoline and diesel to cars owned by individuals, agricultural vehicles and taxi meters. Hence corporate owned cars are excluded.

Gulyas said the new fuel price cap rules came into effect from noon on Saturday.

“It is important to note that the government can keep fuel prices at HUF 480 per liter for retail consumers,” Gergely Gulyas told a press conference.

Government from Budapest It was announced last November Petrol and diesel prices at gas stations should not exceed 480 forints (1.19 euros or 1.21 dollars) per liter, below the current price of 500 forints. Also, in February, the prices of some basic food items were reduced.

A few weeks ago, the CEO of the Hungarian oil and gas company MOL, Zsolt Hernadi warned in an interview that the fuel price ceiling should be removed in Hungary because it would lead to shortages “sooner or later”.

Hungary’s largest company has called for the removal of ceiling prices

Zsolt Hernadi, president and CEO of MOL, Hungary’s largest company, warned that a gradual lowering of price caps is necessary to ensure long-term security of fuel supply.

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In March, MOL announced that it had arrived To sell at a loss Every liter from the pump due to price limitation.

“Everything depends on war. If there is war, there is war inflation. If peace prevails, these measures can be quickly abandoned. “If there’s a war, we can’t do it, or we can do it very slowly,” Hungarian Prime Minister Viktor Orbán said last month.

The Budapest government decided to do so at the end of May Only cars registered in Hungary To benefit from cheaper prices, sparking a new conflict with the European Commission.

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