Hungary competition watchdog rejects small pumps' complaint over fuel price cap

The case originates in the fuel price freeze introduced in November 2021. The government capped the price of basic motor fuels at HUF 480 per litre, which quickly caused tensions in the sector. In February 2022, a cap on wholesale prices was also imposed, which squeezed wholesalers other than energy group Mol out of the market.

This move has particularly affected small petrol stations, which play a key role in the supply of fuel in many regions. Although Mol had signed a contract with these filling stations, the terms were unfairly unfavourable, according to the FBSZ.

The already tight rations at the time were reduced even further, but they also had to arrange their own transport,

the FBSZ described the situation they were in back then.

The situation deteriorated further by November 2022, when Mol suspended the servicing of small pumps, citing a shortage of supplies. The FBSZ claims that during this period, some of their customers switched to the larger chains. Although the situation returned to normal with the abolishment of the price cap in December, the turnover of small petrol stations has not returned to previous levels.

In the view of the FBSz, Mol's actions have unlawfully restricted the conditions of free competition.

The lobby also turned to the EU competition authority, but their referral was directed to the GVH. However, the Hungarian competition watchdog refused to open a detailed competition investigation.

Mol consistently denies that it has committed any breach of competition law. At the same time, some analysts say that the government's actions have also consistently worsened the situation of smaller players in the sector.

In a further development in the case, some members of the FBSZ also challenged the fuel price freeze legislation, arguing that the Fundamental Law (i.e. Constitution) does not allow the government to force businesses to operate at a loss. Although their application was rejected by the Constitutional Court,

it was admitted by the European Court of Human Rights in Strasbourg.

The industry is now anxiously awaiting the ECHR's decision, which is expected soon.

Cover image (for illustration purposes only): Getty Images