Page 11 - EurOil Week 06 2023

EurOil PEFORMANCE EurOil

Fuel price cap propels Hungary’s fuel

consumption to record levels in 2022

HUNGARY THE retail price cap on vehicle fuel between Hungarian fuel prices were among the lowest in
November 2021 and December 2022 lifted fuel Europe thanks to regulated prices.
Fuel sales rose by 22%. sales in Hungary by 23% to 4.68bn litres last year, In August, the cabinet narrowed the eligibility
according to data from Hungarian Petroleum further, excluding company cars from the reg-
Association (MASZ). ulated price scheme after MOL began mainte-
The government introduced the motor fuel nance at its Hungarian refinery.
price cap in November 2021 at HUF480 per litre Facing a supply crunch amid soaring
(€1.2) to ease the impact of rising inflation. The demand, the government scrapped the price cap
regulated prices applied to 95-octane fuel and overnight in early December to avoid the col-
diesel, while leaving premium products out. lapse of the market. Fuel imports tumbled last
As a consequence of state intervention, the year after wholesale prices were also capped at
sale of 95-octane petrol rose 37% to 1.56bn HUF480 per litre.
litre and gasoline by 33% to 2.77bn litre, while In a decree issued on the same day, the
demand for premium products dropped. government raised the rate of the windfall tax
MASZ members (MOL, OMV, Shell, Lukoil, MOL’s refining business must pay on the spread
Oil, Mobil Petrol and Castrum Ferrerum) between Russian crude and Brent from 40% to
account for about three-fourths of the coun- 90%.
try’s petrol market and two-thirds of the diesel MOL covered losses stemming from selling
market. fuel below the market price from huge refinery
Late in May, the government limited the reg- profits, as the company continues to receive
ulated prices to top-ups of vehicles with Hungar- Russian oil after landlocked Hungary received
ian number plates to put the squeeze on petrol an exemption from EU sanctions banning the
tourism, which lifted sales to record levels in 1H. import of crude oil in June. ™

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