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Filling Stations Closing Due to Gov’t-Mandated Price Cap on Gas

picture of MOL station

Three gas stations had to close last week due to the government’s price cap set on regular gasoline nearly three months ago, according to analysis published on Holtankoljak.hu. If the price of Brent oil continues to rise and the government maintains the price cap policy after February 15, even more gas stations could close.

The price of Brent oil is rising due to several factors, says the site. It also didn’t help that the Antwerp oil center, Europe’s largest oil hub, was hit by a cyber attack last week. The price per barrel has already passed $90, and analysts said that the price could soon reach $100 a barrel and not come down.

The site added that gas stations were now waiting for the government to determine what will happen after February 15. If conditions remain as they are at present and gas stations are not compensated for the loss of revenue, supply problems could even start occurring.

On the positive side, the forint strengthened last week, with the exchange rate against the dollar now at around 310 forints. Although this may put a brake on further price hikes, global market developments will likely prevent any significant drops in the price of oil, they wrote.

The price of Brent per barrel rose 4% last week, with the current price hovering around $92.78 per barrel. [Index]

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Posted in Domestic

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