Brussels attacking Hungary for fuel price cap

The European Commission has called on Hungary to suspend caps on fuel prices. Hungarian people's interest continues to come first for the government, Hungary's justice minister responded.

ECONOMY JUNE 9. 2022 17:23

Discriminatory fuel pricing against vehicles with foreign license plates could lead to court action, according to a threatening message from Brussels, the Hungarian Index news portal writes. In a letter sent by the European Commission on Wednesday, internal market commissioner Thierry Breton called on Hungary

to suspend the application of discriminatory fuel prices against vehicles with foreign license plates, or the country will risk being taken to court,

according to a letter seen by Reuters, the Origo news portal points out.

As its source, Reuters cites a letter Mr Breton addressed to Laszlo Palkovics, Hungary’s national innovation and technology minister. In the commissioner’s view, the measure regulating price caps means that vehicles with license plates from other EU countries have to pay 50-60 per cent more for fuel compared to vehicles with Hungarian registration, which constitutes a violation of EU laws.

Last year, the Hungarian government decided to introduce price caps on fuel as of 15 November, setting the ceiling for fuel prices at 480 Hungarian forints (appr. 1.2 euros) per liter. The measure which charges market prices to owners of vehicles with foreign licence plates, was announced on 26 May. With a Hungarian licence plate, however, motorists can still buy fuel at 480 forints (1.2 euros) per litre.

Mr Breton requested an explanation from Mr Palkovics as to what justified those measures, adding that linking the official price cap on fuel to a Hungarian licence plate might constitute a violation of EU law. He also asked the minister to suspend the application of the measures until their compliance with EU law has been ensured.

„I am asking you to provide us with your reply with regard to the justification and the validity period of those measures, which might constitute violations of EU law,” Mr Breton wrote in his letter addressed to Hungary’s technology minister.

The European Commission reserves the right to launch urgent infringement proceedings which can ultimately lead to court action against Hungary and possible fines, Mr Breton wrote.

Hungarian Justice Minister Judit Varga responded to the letter on her social media page, saying „Our answer is straightforward: the interests of Hungarian people still come first for us.”

ECONOMY

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european commission, fuel prices, Hungary, thierry breton