Hungary: Cheap gasoline only for … locals

In defiance of European law, the Hungarian government decided to subsidize gasoline only for Hungarians. Strong reactions are expected in Brussels.

With the official reasoning that it wants to end “gas tourism”, the Hungarian government decided, rather unexpectedly, on Thursday to ban drivers from abroad, even from other EU member states, from being supplied with cheap state-subsidized petrol to Hungary. Specifically: With the subsidy, super gasoline (95 octane) costs 480 forints per liter, ie 1.23 euros. From Friday this price will be available only for cars with Hungarian license plates. The rest of the drivers will pay the market price of gasoline, which is 40% more expensive. Since November 2021, the Hungarian government has imposed a ceiling on the price of gasoline and diesel.

According to the Austrian News Agency (APA), subsidized gasoline in Hungary is much cheaper than in neighboring countries. In Austria and Slovakia, drivers pay an average of 1.80 euros per liter, in the Czech Republic and Italy 1.87 euros, in Germany 2.15 euros. Naturally, every day thousands of drivers cross the Hungarian border to “scarf” at low prices, resulting in overcrowding at gas stations. But this is nothing new for the EU. Even before the dramatic rise in fuel prices brought about by the war in Ukraine, many drivers from the western German provinces traveled to Belgium or Luxembourg to refuel at better prices. The same is done by drivers from Northern Greece who prefer to put petrol in neighboring Bulgaria.

“Clear breach” of Community law

Can the Hungarian government so easily offer a privileged price to Hungarian drivers by imposing a “hat” on everyone else? According to the German News Agency (DPA), the unequal treatment of nationals and citizens by other EU member states “raises the question of whether Hungary is violating the principle of non-discrimination on grounds of nationality enshrined in EU law”. In fact, Community law prohibits not only direct but also any indirect discrimination on the basis of nationality. In a statement in Budapest on Thursday, Secretary-General of the Council Adal Rogan acknowledged that the Hungarian government’s decision “would provoke some discussions with Brussels”. This is certainly not the first time that Hungary’s ultra-conservative prime minister, Viktor Orban, has opened up to the EU.

Speaking to the Austrian newspaper Kurier, Walter Obvexer, dean of the Law School at the University of Innsbruck, spoke of a “clear” violation of European law. He points out that the European Commission can appeal to the European Court of Justice against Hungary, and individuals can do the same if they wish. But the representative of the Austrian motorist club ARBO, Sebastian Obrecht, states in the newspaper Der Standard that “Hungary is violating European law and it is sad that this is happening”.

“Unwanted” Austrian drivers in Hungary?

Unpleasant news also from Martin Graslober, representative of the OAMTC car and tour club. “Drivers who are members of us are protesting that gas stations in Hungary have refused to serve them and are simply evicting them,” Graslober told the Austrian news agency. He adds that many drivers ask if the decision of the Hungarian government is considered legal and if they can take legal action to overturn it.

Especially from Burgenland, the easternmost state of Austria, many drivers have so far resorted to neighboring Hungary to save money. “We are talking about a difference of 60-70 minutes per liter,” says the ARBO spokesman. “You can fill the tank, saving 30 to 40 euros. Even an additional 20-30 km route is advantageous in this case, after all many people combine it with shopping in the supermarket or with an appointment at the dentist.”

Giannis Papadimitriou (DPA, APA, Der Standard, Kurier)

Source: Deutsche Welle