Hungary combats fuel tourism by requiring foreign-licenced cars to pay up to 70% more when fuelling up – paultan.org

Hungary introduced a new policy last month which requires drivers of foreign-licenced cars to pay around 60-70% more when fuelling up in the country, according to a report by Reuters.

The move was done in light of soaring retail prices, which prompted Hungarian local government to place a cap on retail fuel prices at 480 forints (1.22 euros or RM5.61) per litre in mid-November last year, although this has been extended recently until October 1 this year.

Without the limit, Hungarian Prime Minister Viktor Orban said market prices would be around 700 to 900 forints (1.78 to 2.28 euros or RM8.18 to RM10.52) per litre. With its latest measure, the government wants to limit the use of the subsidised fuel to Hungarian-registered vehicles.

Prior to the new policy, “fuel tourism” was rampant as drivers from neighbouring countries crossed into Hungary to purchase the cheaper fuel. While locals welcomed the move, the European Union, which Hungary is a part of, called it “discriminatory” and has asked the country to stop the two-tier charging system.

Malaysia doesn’t practice such a system, but it does impose restrictions on the type and amount of fuel owners of foreign-registered vehicles are allowed to buy – RON 97 petrol is allowed but RON 95 is prohibited. Meanwhile, for diesel, there is no restriction when it comes to grade, but there are limits – 20 litres per day at petrol stations within a certain radius of border entry points, although this limitation is not in place further inland.

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