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Latvian PM pledges that the areas,” the Commission’s Executive Vice- allocate HUF18.5bn (€46mn) in subsidies
President Margrethe Vestager, responsible for
to independent petrol station operators to
country will have enough gas for competition policy, said in June. avoid a countrywide shutdown of fuel stations
By acquiring OMV Slovenija, MOL would
ahead of the August 20 national holiday.
households hold high market shares in the fuel retail Stations Association (FBSZ) decided
Members of the Independent Petrol
markets and, together with Petrol, it would
Latvia will not run out of gas to households hold a very large share of the market. unanimously on a two-day closure at last
for the heating season, Prime Minister MOL announced its deal to buy OMV’s Friday’s general meeting, citing supply
Krisjanis Karins said in an interview on the retail network of 120 service stations in shortages, uncertainty and late subsidy
Latvian Television morning broadcast Rita Slovenia in June. The Hungarian company payments, amounting to HUF20 per litre.
Panorama on August 17. offered €301mn for 92.5% of the company, They called for the shutdown to raise
Karins said that, despite the contradictory in which its Croatian subsidiary INA already awareness of the impact of the regulated
messages of gas trader Latvijas Gaze, the holds 7.5%. MOL decided not to submit motor fuel price caps, pushing family-owned
Incukalns storage contains more than enough commitments during the initial investigation SMEs to the brink of bankruptcy.
gas for Latvian households for the whole to address the EC’s preliminary concerns. The government introduced a HUF480 per
heating season, LSM.lv, a Latvian news litre price cap on 95-octane motor fuel and
website, reported on August 17. gasoline until November and later set a price
The prime minister also stressed that Croatian government to cap at these levels for the wholesale price.
Latvijas Gaze should not and will not be Regulated prices were extended until October
able to trade this gas anywhere else. On the intervene in energy sector if 1.
other hand, if Latvijas Gaze has any internal Motorists with foreign-registered cars
difficulties, Latvenergo will take over the needed, PM says were excluded from filling up their tanks at
work. discount prices in May to curb fuel tourism,
“Through Conexus, we know the full The Croatian government will adopt energy and the government narrowed the eligibility
picture that is actually in storage. Let us crisis measures if they are needed, Prime to cheaper fuel for private individuals, leaving
not listen so much to what is said by one Minister Andrej Plenkovic said on August 15. corporate-owned vehicles to pay market
Gazprom-controlled company in Latvia,” Despite concerns over Russia’s decision prices from August. The measures did little to
Karins said. to cut gas deliveries to the EU, and rising ease supply problems.
He also added that Latvia has strategic international energy prices, Plenkovic said The move came as Hungary’s leading
reserves for gas, which are intended that Croatia currently has no problems with oil and gas giant began its annual repair
specifically if Russia cut off the Baltic States. energy sources. at its Danube refinery, leading to a 65%
“This is a big game of geopolitics in which “The Okoli underground gas storage is decline in diesel output. Maintenance work
we are involved. Our job is to keep calm, to being filled according to plan. Today we are at other refineries in the region has forced
understand that we are paying because Russia probably at 60 or so percent, everything will the government to tap reserves, as foreign
attacks Ukraine. If we do, I am sure that we be ready as planned. As for savings, we came importers are reluctant to supply to Hungary
will stand, Russia will not be able to blackmail out with recommendations almost a month at artificially low prices.
Latvia and the rest of Europe this winter,” said ago. Everyone in Europe is doing this, so we Analysts had warned of supply crunches
the PM, LSM.lv said. will so do we. I think this is a time of general as demand remains high as the majority of
social responsibility, people are aware, they motorists can buy fuel at one of the lowest
have all available information,” said the prices in Europe.
EC suspends investigation prime minister, according to a government oil and gas company MOL has halved its
FBSZ also complained that Hungarian
statement.
into Hungarian MOL’s are preparing for autumn in terms of energy deliveries to member stations, leading to
He added that “Like everyone else, we
widespread shortages.
acquisition of OMV Slovenija issues, but also in terms of fiscal capacity for gas giant Zsolt Hernadi and other industry
Chairman-CEO of CEE’s leading oil and
various types of interventions”.
The European Commission’ Competition “We will look at the situation and then, leaders have called for ending regulated prices
Directorate launched the investigation on June depending on the needs, intervene. The that have led to mismatches in supply and
23 under the EU merger regulation. MOL and consequences of the war in Ukraine and the demand.
OMV Slovenija are, respectively, the third and droughts, which also affect the obtaining In a statement issued late Tuesday, FBSZ
second largest fuel suppliers in Slovenia after of electricity from hydropower plants, will said an extraordinary general meeting
Petrol, the partially state-owned incumbent. certainly have their effect. As we have gone decided that each of its members could decide
Brussels is worried that the takeover would through all the situations so far, we will also individually whether to open or remain closed
severely reduce competition on the Slovenian go through the ones that are ahead of us,” on the weekend. The association also said it
retail motor fuel market. Plenkovic said. initiated talks with the management of MOL
Necenzurirano.si said that Brussels to improve rural motor fuel supply.
confirmed the decision-making process on Small fuel operators run about 500-600
the issue was suspended and will continue Hungarian government pump stations in Hungary and their closure
after the Commission obtains the needed in the days prior to the national holiday,
documents. announces subsidies to when travel picks up, would have had a major
“To ensure that fuel prices at the pump impact on fuel supply.
are not artificially inflated by lack of independent fuel stations to Subsidies will be paid out in the coming
competition, we need to keep a close eye on weeks, according to government officials.
consolidation. OMV Slovenija and MOL are avoid fuel chaos
two of the leading fuel suppliers in Slovenia
which compete head-to-head in many local Hungary’s government has decided to

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