Petrol stations are now buying gas oil at a significantly higher price than they can sell it for.Continue reading
According to the fuel price comparison site Holtankoljak.hu, three gas stations were closed last week because of the maximized price. If Brent oil prices continue to rise and the Hungarian government does not lower prices, this trend could continue after February 15th, the site predicted. The government decided on the freezing of fuel prices in November. It was decided that the price of unleaded-95 gasoline and diesel will be maximized at 480 forints (EUR 1.36). The measure came into effect on November 15th and is valid until February 15th.
This article was originally published on our sister-site, Ungarn Heute.
As the portal Holtankoljak.hu writes, due to the movements on the stock exchange and a cyberattack on European oil centers, the price per barrel has shot up to the $90 mark (almost EUR 80), and analysts say that after these events the price of oil could very quickly rise to a steady $100 (almost EUR 90). All of this is currently having a negative impact on gas stations in particular, as they are unable to transfer the increase in wholesale prices to retail prices due to the 480 forint (EUR 1.36) price cap.
At the same time, the website stresses that the industry is waiting for an announcement from the government on whether the conditions will be maintained or changed after February 15th.
A change is essential as there could be supply problems if all conditions remain as they are now.”
Next week, a significant increase in the forint could limit the increase in wholesale fuel prices, as this week the forint gained 10 forints against the dollar, so the exchange rate is currently at 310 forints (almost EUR 0.90).
If there were no official prices, the average price of both gasoline and diesel, taking into account recent price changes, would be well above 500 forints (EUR 1.42).
“If the gasoline price freeze is prolonged, retailers will surely go bankrupt,” Ottó Grád, Secretary-General of the Hungarian Petroleum Association told ATV television. According to him, in the coming weeks we will see a continuous increase in the price of oil and it would not be surprising if it reaches or exceeds the limit of 100 dollars within a short time.
The National Tax and Customs Administration (NAV) has inspected more than 2,000 gas stations since November 15, and so far the tax inspectors have found only 12 cases of price violations. In the decisions so far, NAV has imposed fines totaling 3.2 million forints (9,000 euros).
However, László Molnár, CEO of leftist economic research company GKI, believes that the government will extend the deadline for political reasons. László Molnár said that the oil price was around $90 (almost EUR 80) on Saturday, which gives an idea of what the situation would be like without the price freeze.
When prices were frozen, fuel prices were 506-510 forints. Therefore, the price of fuel now would be around 520 forints,
he told ATV.
The TV station asked the head of the Prime Minister’s Office, Gergely Gulyás, at his latest press conference on Thursday whether the government was planning to extend the price freeze or not, but he did not give a concrete answer and said, “The government will decide by February 15.”
Sources: ATV, Holtankoljak.hu
Featured image via Pixabay
