Hungary’s recently capped petrol and diesel prices are so low, that smaller pump stations in the country are struggling to stay in business.Continue reading
On Sunday, a government decree was published extending the price cap on fuels for another three months until May 15, 2022. According to the decree, gas stations must continue to sell fuel at a maximum price of 480 forints (EUR 1.34 per liter). In recent weeks, more and more experts and professional associations have pointed out that many operators would go bankrupt because they cannot adjust their fuel prices to world market prices.
This article was originally published on our sister-site, Ungarn Heute.
“The epidemic and the dramatic increase in world energy prices have led to an increase in fuel and food prices throughout Europe, that’s why the government decided to continue to protect the Hungarian consumer and cap prices until May 15,” stated the Ministry of Innovation in support of the government’s decision. However, not everyone reacted positively to the measure.
The purchase price of fuel will certainly continue to rise, which will further aggravate the situation on the domestic fuel market, holtankoljak.hu reports. Gas station owners cannot be expected to sell the fuel with constant losses.
As a result, according to the website, quantity restrictions can certainly be expected, but it is also possible that a considerable number of service stations will have to be shut down.
Three gas stations were recently closed because of the maximized prices.
The price of oil has reached unbelievable heights worldwide, and actually, a consumer price between 520 and 550 forints (EUR y1.46 and 1.54) would be justified.
The revenue that Hungarian gas stations generate in stores does not compensate for their losses, and many operators do not have such stores at all.
Currently, there is no provision for compensation or reduction of VAT or excise tax, the frozen prices have to be solved somehow by the gas station owners. This is already a challenge, as the purchase price of diesel is above 480 HUF (EUR 1.34) since February 4,”
according to holtankoljak.hu.
The Hungarian gas company Mol has already indicated that they would take over some of the gas stations in difficult situations.
Sources: Menedzsment Fórum/mfor.hu, holtankoljak.hu
Featured image via Szilárd Koszticsák/MTI
