Hungary's government canceled a controversial fuel price ceiling after a gasoline shortage gripped the country, Bloomberg writes.
The restriction, which had set the price of gasoline at 480 forints ($1.2) per liter, currently the lowest price in the EU, ended at 11 p.m. local time Tuesday, Cabinet Minister Gergely Gulas said. He blamed EU sanctions on Russian oil for the supply disruption.
The limit became unacceptable after a sharp increase in demand, a drop in supply and maintenance at Hungary's only refinery.
The situation became chaotic and its extension threatened the country's energy security, Zsolt Hernadi, chairman and CEO of the Mol Nürth energy company and refinery, said at the same briefing.
He said Hungary must now restore confidence among oil importers, who shunned the country last year to avoid losses. He said it would take up to two months to stabilize the market, including replenishing reserves.