Parliament Passes Amendments to Scrap Fuel Price Caps

Hungarian Parliament passed legislative amendments on Tuesday to scrap motor fuel price caps.

The amendments to the acts on the establishment of prices and the security stockpiling of imported crude oil and petroleum products were passed with 130 votes in favor, 36 votes against and five abstentions.

Minister of Economy and Energy István Kapitány, the author of the proposal, said it was time to withdraw Hungary from crisis mode wherever it is allowed by improving market conditions.

The regulation gives the minister responsible for trade policy the opportunity to later establish the official price of petrol and diesel in a decree if that is justified by extraordinary market conditions. István Kapitány also noted that the reduction in excise tax and MOL's reduced margins will be maintained.

The prices of petrol and diesel had been capped at HUF 595/liter and HUF 615/liter, respectively, since March.