Capped gasoline prices: has Hungary, which adopted this measure, really backpedaled three months later?

In the “legislature contract” presented by the New Popular Front, a blockage of the “price of basic necessities” is defended among the most urgent actions to be implemented. Are concerned “food” Or “energy”but also “fuels”. If a cap on the price of gasoline appears to be a measure with an impact on purchasing power, the presidential majority believes that this is a false good idea. “Viktor Orbán’s Hungary tried this measure in 2021”without success, provides the official account of the presidential majority on social networks for the legislative campaign.

In practice, the Hungarians would have faced a “immediate drop in imports”as well as a “gasoline shortage in the country”. A failure for Viktor Orbán, who would have “gave up this measure after three months” only.

Prices actually blocked for more than a year

To combat repeated increases in the liter of fuel at the pump, the Hungarian government has indeed implemented a temporary price freeze from November 15, 2021. “We are convinced” that such a measure “will support the economy and contribute to a reduction in inflation”Prime Minister Viktor Orbán’s chief of staff said at the time.

This decision ended up being abandoned, but not after three months. Contrary to what the presidential majority’s campaign account suggests on If a period of three months was indeed observed, it corresponded to the deadline at the end of which the government had to take (or not) a renewal of the measure. This is how the blockade was extended on several occasions, until the Hungarian Prime Minister and his entourage put an end to it.

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MOL, the local energy giant, had recently mentioned a “clearly critical supply situation” in terms of fuels. “A partial shortage of our products affects our entire network and a quarter of our stations are completely dry”, said a representative of the company. In Hungary, it was then estimated that the drop in fuel imports was around 30%. To avoid selling at a loss – the liter of SP95 was capped at 480 guilders, or 1.31 euros at the time – foreign companies had reduced their fuel deliveries, according to the Hungarian Association of Independent Service Stations (FBSZ) .

Sanctions against Russia singled out by Orbán

This price freeze has put Hungary once again in the EU’s sights. In order to prevent foreign motorists from rushing to border stations to benefit from advantageous prices at the pump, the authorities have put in place a differentiated rate for drivers of another nationality. A decision contrary to the principles of “free movement of goods and services”of “free movement of citizens” And “non-discrimination” in force within the Union, Brussels underlined, therefore opening an infringement procedure against Budapest.

Hungarian leaders blamed the EU, saying new sanctions against Russia had “caused tangible disruptions in oil supplies”. In response, a spokesperson for the European Commission explained that such allegations had not been “absolutely no sense”. The decision of the European Union and the G7 partners, which at the time consisted of capping the price of Russian oil exported by tanker at $60 per barrel, had no effect, he explained, “no impact on Hungary’s ability to import oil through its pipeline, as the cap only applies to oil transported by sea”.

At the same time, the Commission added that the additional sanctions imposed on Russia on petroleum products and refined petroleum were not at the time “not yet in force”. From then on, it appeared “impossible that EU sanctions will have” could have “an impact on Hungary’s supply”.

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