Oil: Price cap removed in Hungary

The Hungarian government announces the abolition of the fuel price cap. For this reason, a shortage of gasoline has led to a rush to the gas stations.

Share:

The Hungarian government announces the abolition of the fuel price cap. For this reason, a shortage of gasoline has led to a rush to the gas stations.

“The measure is abolished” with immediate effect, says Gergely Gulyas, Prime Minister Viktor Orban’s chief of staff, at a press conference. Indeed, the latter points to the European sanctions against Russia, regularly criticized by the Hungarian executive for the economic stagnation of the country.

Disruption of supply and demand

“What we feared has happened,” he said: the entry into force of a European Union (EU) embargo on Russian seaborne oil “is causing tangible disruptions in oil supply.”

Earlier, the company MOL had lamented a “clearly critical supply situation”.

“Demand is exploding, consumers are stocking up and panic buying is starting,” Gyorgy Bacsa, the company’s executive director, said in a statement sent to AFP.

Media reports show queues of up to 100 meters long at gas stations around the country. An AFP photographer also noted difficulties in several places in the capital Budapest.

“A partial shortage of our products affects our entire network and a quarter of our stations are completely dry,” laments Mr. Bacsa.

The fuel shortage is due to a 30% drop in fuel imports, as well as maintenance operations at one of MOL’s refineries, which are expected to last “several weeks,” he said.

The Association of Independent Service Stations (FBSZ) is calling on the government to abandon the cap on fuel prices, blaming it for the remarkable shortage of gasoline in recent weeks. In order not to sell at a loss, foreign companies are reducing their fuel deliveries to Hungary, according to FBSZ.

Price caps to support the economy

In November 2021, Budapest decrees a fixed price of approximately 1.17 euros per liter of unleaded 95. Revised every three months, the cap was last extended in September.

This measure, also applied to a series of basic food products, aims to support economic activity and curb the price boom, argues the government.

Inflation in Hungary exceeded 21% year-on-year in October, its highest level since 1996, and the third highest in the EU, according to Eurostat. The governor of the Hungarian central bank, Gyorgy Matolcsy, castigates the “price caps”. He estimates that they inflate “inflation by three to four percentage points” by pushing merchants to raise prices of other goods.

The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.