BUDAPEST (Pakistan Point News / Sputnik - 10th December, 2022) It could take several months to normalize imports of petroleum products to Hungary after the country's government decided to cancel the price cap on gasoline and diesel fuel, Zsolt Hernadi, the Chairman-CEO of Hungarian oil and gas company MOL Plc., said.
"Recently, there has been a very serious deficit. It will take weeks for fuel availability to reach normal levels again," Hernadi said in a Friday interview with the Telex.hu news portal, adding that "full normalization of imports may take several months."
The MOL CEO praised the Hungarian government's decision to lift the price cap for fuel and said that, ideally, by the beginning of next year, the country will be able to have stable imports and significantly higher stocks.
Earlier this week, the Hungarian prime minister's office said that, accepting MOL's proposal, the government was canceling the price cap on gasoline and diesel fuel.
MOL said on Tuesday that Hungary was in a critical fuel supply situation. The Independent petrol Stations Association said earlier that MOL would not supply gasoline and diesel fuel to some gas stations for the third week in a row due to issues with supplies.
In November 2021, the Hungarian government froze prices of gasoline and diesel fuel at 480 forints per liter for three months. The government had been extending the measure since. Since May 27, only vehicles with Hungarian registration plates were allowed to fill their tanks at a reduced price, prompting accusations of discrimination by the European Commission. Since July 30, only private motorized vehicles, farming equipment, and taxis with Hungarian license plates were allowed to buy gas at a discounted price. In September, the government extended the measure until December 31.
Last week, the EU reached an agreement on setting a price cap on Russian oil at $60 per barrel, which went into effect on Monday. The cap will be reviewed every two months to remain at 5% below the International Energy Agency benchmark. The G7 nations and Australia have also agreed to set a $60 price ceiling on oil from Russia.
