"If the gasoline price freeze is prolonged, retailers will surely go bankrupt," the Hungarian Petroleum Association said. The measure came into effect on November 15 and is valid until February 15.Continue reading
About a hundred gas stations across Hungary have already limited the amount of fuel they sell, news site Népszava learned from the managing director of 3 P Online Kft, which operates the gas price comparison database Holtankoljak.hu.
This article was originally published on our sister-site, Ungarn Heute.
The stations decide on the quantity limits themselves, and there is nothing to prevent them from doing so, as no regulation prohibits the practice, notes the expert, who has heard of “portions” of 5-10 liters per gas station. There are also rumors of a station that has set a daily cap of 60 liters which was only enough for the first six customers arriving in the morning.
The portal also notes that due to the rise in European fuel prices caused by the international oil price hike, regional carriers are now filling up their tanks in Hungary whenever they can.
Even people near the Slovak and Austrian borders bring home multiple canisters of fuel at a time – which is several dozen forints more expensive there. Since the wholesale price – or acquisition price – of diesel fuel is now significantly higher than the retail price of 480 forints per liter, even larger consumers have begun to drive to Hungarian gas stations. For this reason, it is understandable that many companies have opted for quantity restriction, says Eszter Bujdos.
So far, three domestic gas stations have reportedly been closed since the government introduced the fuel price cap, and Bujdos has not heard of any others. However, if Hungarian oil and gas company MOL, which supplies most domestic gas stations, applies the global oil price increase of the past two weeks to its wholesale prices starting Friday, it will trigger a final “avalanche of closures,” the expert said. This could lead to the bankruptcy of hundreds of gas stations, usually small but crucial in supplying their regions. She added that in the 15-year history of its website holtankoljak.hu, MOL has never experienced such a long period of time when fluctuations in the international oil price and the forint exchange rate were not applied to wholesale prices.
Eszter Bujdos considers the whole situation untenable and unconstitutional, which could lead to a nationwide work stoppage in agriculture in a few days. The responsible Ministry of Innovation and Technology (ITM) has not yet responded to the proposals of the small gas stations. Earlier, the Hungarian Petroleum Association, which represents domestic chains, proposed a tax cut, but the cabinet did not consult it before making its decision.
Eszter Bujdos considers the situation created by the government’s decision to be untenable and unconstitutional, which will likely lead to a nationwide disruption of agricultural work in a few days. The responsible Ministry of Innovation and Technology (ITM) has not responded to the proposals of the small gas stations last week, she said. As previously reported, the Hungarian Mineral Oil Association, which represents large domestic chains, is proposing a tax cut, but the cabinet did not consult them before making its decision.
According to the government critical ATV, the Finance Minister is not concerned about an alleged supply problem. When asked by the news channel, the finance minister said that there are service providers ready to take over the suspended services. Mihály Varga considers the quantity restrictions unfortunate “because they force drivers to look for loopholes.” The finance minister added, however, that “we are all glad” that there are operators who continue to operate at the expense of wholesalers’ and retailers’ margins.
The head of the Prime Minister’s Office also reacted to the closures and special measures of gas stations. Gergely Gulyás said several petrol stations have been reported to be closing due to the price cap; the government is aware of 3-4 petrol station closures so far. However, they are unaware of any places where no replacement can be found within 5 kilometers of those that have decided to close.
In these cases, the state will appoint a service provider and MOL will operate the given stations.
However, those who want to take fuel in a canister can buy only 10 liters of it. Gulyás added that the government does not plan to compensate, because “we do not want to help the gas stations with taxpayers’ money.”
Featured photo illustration via Pixabay
