Hungary’s Fuel Price Cap Relies On Russian Shipments

Hungary can only maintain a fuel price cap beyond 1 Jan if oil shipments from Russia flow without interruption and MOL's refinery in Szazhalombatta operates continuously, the government said.

• "We can only maintain this measure ...if oil shipments from Russia arrive without disruptions and the Szazhalombatta refinery operates continuously," a government spokesman said in an emailed reply to Reuters.
• The government introduced a fuel price cap in Nov 2021 to protect consumers from surging inflation. The scope of the cap was narrowed in July amid supply disruptions.
• MOL has temporarily curbed fuel deliveries to some retailers this month after oil supplies from Russia via the Druzhba pipeline fell substantially below normal levels.
• Oil supply to parts of Central and Eastern Europe via a section of the Druzhba pipeline were suspended temporarily this month after a Russian rocket hit a power station that is close to the Belarus border and provides electricity for a pump station.