Hungary to tweak fuel price formula to curb prices
Kyiv • UNN
Hungary has adjusted its fuel price formula to exclude some Central European countries from the comparative base in order to reduce prices for Hungarians.
The Hungarian government has decided to adjust the fuel pricing formula that traders must follow to keep prices down by excluding some Central European countries from the comparative base, Prime Minister Viktor Orban told public radio on Friday, UNN reports citing Reuters.
Details
The Orban government said last week it is giving fuel traders two weeks to adjust their prices to match Central European averages as part of a broader government intervention in price setting following last year's inflation spike.
However, in an apparent step back from the pressure exerted on fuel traders, Orban said that the government is now focused on bringing prices in line with those in neighboring countries, with the exception of Poland, the Czech Republic and Bulgaria.
"We will recalculate the numbers, but based on that, we will make sure that they adhere to our agreement that Hungarians cannot pay more for fuel than people in neighboring countries," Orban said, adding that the initial proposal was "not without mistakes.
Zsolt Hernadi, CEO of Hungarian oil and gas group MOL, said last week that he was concerned that government intervention in the markets would affect the company's plans.
Addendum
The Orban government lifted the fuel price cap in December 2022 after a lack of imports and panic buying led to fuel shortages.