Page 14 - EurOil Week 28 2022

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gas for the residential consumers in Moldova. Hungarian motorists can fill up their tanks at Hungarian government declares
Given the circumstances, the price would the lowest price in the EU.
be higher than the one paid last winter to The government phased out discount fuel energy state of emergency,
Gazprom but lower than the $1,400 charged prices for foreigners in May, while keeping
by Gazprom to Moldovagaz in August. centrally set prices for only Hungarian- tightens utility price cap rules
registered vehicles. The discriminatory
regulation will likely trigger an infringement Viktor Orban’s government made a
Latvian energy law bans procedure by the EU. remarkable turnaround on one of its key
policy issues, the regulated price scheme
Excise tax revenues in the meantime
Russian gas supplies have increased, rising by HUF6.7bn to on July 12, after it declared an energy state
of emergency and reduced eligibility for
HUF263bn in the first five months even as the
On July 14, the Latvian Parliament, the government cut excise tax to minimise losses regulated energy prices for retail clients.
Saeima, supported amendments to the Energy for smaller petrol stations, which are losing From August 1, regulated energy prices
Law, which provides for the diversification of money on each litre sold. for households will apply only to electricity
natural gas supply routes and the provision of Excise duties on petrol fell from HUF120 and gas consumption up to the national
strategic reserves for natural gas, as well as the to HUF95 per litre and from HUF110.35 to average, while market prices will apply to
ban on Russian gas supplies, LSM.lv, a Latvian HUF85.35 for diesel. consumption over the average, said Gergely
news website, reported on July 14. Fuel retailers have introduced tighter Gulyas, the head of the Prime Minister’s
The law requires the joint natural gas top-up limits at pump stations last month as Office at the weekly presser.
transmission and storage operator to provide the government’s intervention in the market The blanket cap on household electricity
infrastructure that limits supply risks and has created an imbalance between supply and and gas prices is “simply unaffordable” in
imposes the obligation to build strategic demand. the current wartime energy crisis, he said.
reserves for natural gas. No later than 31 MOL CEO Zsolt Hernadi has repeatedly In numbers, that means a quarter of
August of each year, the amount of natural gas called for the phase-out of the price caps. households will pay the market price as they
required for the consumption of related users He warned of a possible supply crunch amid consume more than the 210/kWh monthly
for the period from 1 October of that year to rising demand and lower imports. MOL will average for electricity and the 144cm
30 April of the following year shall be stored carry out maintenance work at its Danube monthly average for gas.
in the underground gas storage of Inchualna. refinery near Budapest, which will further put Hungarians pay the lowest gas and
The law also provides for a ban on natural- pressure on supply. electricity prices nominally, as prices have
gas supply from Russia. been frozen since 2013.
“The strategic reserves of gas should The average consumer’s monthly
be provided to the extent that supply Bosnian Federation hikes electricity bill comes to HUF7,750 (€19),
protection is possible not only for protected which would be HUF50,800 without the
users, but for the winter season, to ensure natural gas price by 23.3% for utility price cap. Gas bills based on average
the capacity of the electricity base for the consumption would jump from HUF15,800
production of electricity in power plants”, 3Q22 to HUF131,450.
said Chairman of the National Economy, Keeping energy prices artificially low was
Agricultural, Environmental and Regional The government of Bosnia and an important element of Orban’s re-election
Policy Commission Krisjanis Feldmanis Herzegovina’s Muslim-Croat Federation has campaign and that of his government
(Conservatives). decided to increase the price of natural gas policies over the last 12 years, after setting
The draft law also requires the cabinet to by 23.3% for the third quarter of the year, it a price cap on central heating, gas and
submit a report on a national nuclear energy said in a statement on July 14. electricity consumption in 2013.
programme to the Saeima by 31 December Energy Minister Nemir Dzindzic said Maintaining the price cap has put an
2023. that the price hike was the consequence enormous strain on the budget. According
of an increase of the price by Russian to the European Commission, state-owned
Gazprom to the entity’s energy company, utilities are expected to get capital injections
Motor fuel sales in Hungary Energoinvest. amounting to 1.1% of GDP in 2022 and
0.7% in 2023. The gap between the market
“It is a direct request, respectively
surge in H1 on back of price [an] increase of the price by Gazprom to price and centrally fixed prices is leading to
a monthly HUF100bn loss for state utility
Energoinvest. Energoinvest has urgently
caps requested a correction by the Federal giant MVM.
Ministry of Trade and Federal Ministry of
As part of the energy state of emergency,
Motor fuel sales in Hungary rose 32.7% y/y to Energy, Minind and Industry,” Dzindzic domestic gas production will be raised from
2.35bn litres in H1, reflecting strong demand said at a press briefing. an annual 1.5bcm to 2bcm by adopting
for fuel thanks to regulated prices, the The new wholesale price of natural gas dearer extraction technology. Gas prices
Hungarian Petroleum Association (MASZ) will become BAM998 (€510.3) per cubic are high enough that it is even worth
said on July 14. metre. using more expensive technologies in gas
Petrol sales increased by 29% y/y to 847mn Bosnia comprises two autonomous extraction, he added.
litres and diesel sales climbed 35% to 1.5bn entities: The second, the Federation and The government has also mandated
litres in the January-June period. Demand for Republika Srpska, is openly pro-Russian the minister of foreign affairs and trade to
premium fuel fell 33% to 99mn, as this type and is expected to get natural gas at a lower procure more gas. Lignite extraction will be
of fuel is excluded from the price cap. The price. stepped up “to the greatest degree possible”
government extended the HUF480 (€1.2) per and blocks at the country’s second-largest
litre price ceiling until October 1. As a result, power plant, Matrai Eromu will be restarted.

P14 www. NEWSBASE .com Week 28 15•July•2022