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Hungary, Drivers have saved a total of 63 million euros since the introduction of the fuel price cap in November 2021

Drivers have saved a total of 63 million euros since the introduction of the fuel price cap in November 2021, while the state can also report additional revenues from the measure. The absolute losers are the smaller petrol stations.

They entered talks with the Government and listed some proposals to mitigate their losses, but no concrete decisions have been reached yet. In the meantime, the Association of Independent Gas Stations has formed and adopted a statement on the freezing of fuel prices, protesting against the measure.

The Government announced the savings by the drivers, adding that additional 124 million euros in savings are expected by mid-May, when the price cap expires. However, many have criticized the Government’s decision to limit retail fuel prices and would rather see the reduction of VAT on fuels as a support measure.

There are three types of levies on fuels: the 27 % VAT, the fixed excise tax, and the so-called MSZKSZ fee. Currently, based on official pricing, a maximum of 1.35 euros/liter may be charged for 95-grade petrol, but according to calculations, the price would rise to 1.46 euros/euros without the regulation. These cheap fuel prices have boosted fuel tourism, and the trucks of large foreign companies save a lot when they fill up at local petrol stations.

This has significantly boosted domestic fuel sales and, in particular, diesel sales. In December, diesel sales were 9.2 % higher than in the same period of 2019, compared to an average increase of only 2 % in the first 11 months.

Currently, petrol stations make 2.2 eurocents loss on the liter of petrol, and 5.1 eurocents loss on the liter of gas oil. This results from the fact that the purchase price is higher than the capped consumer price.

In their letter to the Government, the Association of Independent Gas Stations calls for the legal establishment of the official price that will ensure the existence of family businesses. They propose the exemption of excise tax from VAT and the reduction of VAT on fuel to 5 %. The association also stated that it would seek a joint solution to the problem with the Government.

The Associations currently has around 160 members, which operate between 300 and 400 petrol stations, covering about 15 % of retail fuel market in the country.

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