Petrol price freeze cannot be sustained for long

Central Europe today is not in a position to break away from Russian oil overnight, the company’s CEO told Mol’s general assembly. According to mfor.hu, Zsolt Hernádi made it clear that this process would require at least 2 years and hundreds of millions of dollars would.

The company’s refineries are basically designed to process Russian crude oil. If no more Russian oil arrives tomorrow via the “Friendship Pipeline”, it would take 2 to 4 years and cost 500 to 700 million dollars to secure the level of supply in the region.

Zsolt Hernádi also referred to the fuel price freeze, which has been extended until July 1, which he says cannot be maintained for long as resources are running out.

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As he said, high energy prices will persist in 2022 and price regulation by the authorities is not a solution. In his view, these transitional measures should be phased out in the medium term and a return to market norms is needed. Failure to do so could result in shortages of goods and potential social tensions, he added.

Zsolt Hernádi told InfoRadio a few weeks ago that there will be supply tensions as long as the price cap is in place. Tank tourism will remain, because it cannot be eliminated completely, but the supply of raw materials is secured in Hungary.

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Thanks to the measure, one does not have to pay more than 480 forints for petrol and diesel in Hungary, while without the measure, a liter of petrol would cost 591 forints and diesel 674 forints.

(Via: mfor.hu, Title: MTI / Zsolt Szigetváry)

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