Hungarian retail consumers continue to enjoy fuel price cap at the pump

Gergely Gulyas, the Hungarian prime minister's office chief, announced the latest government measures during his press briefing.

WORLD JULY 30. 2022 14:41

“Accepting the proposal of MOL (Hungary’s state-owned oil and gas company), the government has decided to limit the scope of its 480-forint fuel price cap to private vehicles, agricultural machinery, tractors and taxis,” the Hungarian premier’s office chief announced at a government press briefing, adding that besides vehicles with foreign registration, for vehicles over 7.5 tonnes and company-owned cars the market price will apply.

Justifying the government’s decision, Mr Gulyas said that the oil refinery in Szazhalombatta, which covers 100 per cent of Hungary’s needs, had to be shut down. The fuel supply is now ensured by imports and the release of strategic reserves. However, the war and the sanctions policy have created a difficult situation for energy supplies, and no one can guarantee that oil supply will be continuous in the autumn. It is therefore not possible to release all of the strategic reserves. The released volume is sufficient to meet part of the domestic demand, while the rest will have to be covered by imports.

Mr Gulyas also touched on the Hungarian government’s aim to avoid nation-wide gas shortages. At the moment, gas storage facilities are at fifty per cent, which is enough for about two months. Solely for residential use, this volume would last for four months, the minister explained, adding that the government is seeking alternative solutions to avoid shortages.

To tackle the drought emergency, the government has set up an Operative Board, about which Agriculture Minister Istvan Nagy will present additional details on Sunday, Mr Gulyas said.

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gergely gulyas, government, Hungary