Shell Hungary announced that it has decided to temporarily close five petrol stations in Hungary as of 1 August.
The moves comes in the middle of fuel shortage in Hungary and increase domestic sales due to regulated prices.
The statement from the company said that increased demand combined with supply shortage on the regional fuel market poses serious challenges to the industry. To ensure more efficient network operation Shell decided to temporarily suspend the operation of five stations, adding that the measures will help to maintain security of supply in the current market conditions.
Last November, the Hungarian Government capped fuel prices in order to protect the citizens from the disturbances in the global energy market. Following the Russian invasion of Ukraine in February, the Government tightened the measures, banning cars with foreign license plates from buying fuel at regulated prices.
The Government continues to narrow the scope of fuel price caps and, as of 30 July, only privately owned cars, taxis and farm machinery can purchase petrol at capped prices of 1.19 euros/ liter.
Last week, CEO of Hungarian oil and gas company MOL Zsolt Hernadi said that the company had to shut down Szazhalombatta oil refinery due to emergency maintenance works. The refinery covers the entire Hungarian fuel demand, therefore, the Government was forced to release a quarter of the country’s strategic reserves to supply the domestic market. However, together with MOL’s reserves, this will not be enough to cover the domestic demand, so the missing amount will have to be imported. Previously, Hernadi warned that Hungary faces fuel shortages if the Government’ price capping policy continues.
