BUDAPEST, April 16 (Reuters) - Hungary's election winner Peter Magyar said he would meet the executive chairman of oil company MOL, Zsolt Hernadi later on Thursday to discuss the security of fuel
Hungary's Magyar agrees with MOL chief Hernadi to maintain fuel price cap
Key Developments in Hungary's Fuel Price Policy
Agreement Between Peter Magyar and MOL's Zsolt Hernadi
BUDAPEST, April 16 (Reuters) - Hungary's election winner Peter Magyar said he met the executive chairman of oil company MOL, Zsolt Hernadi, on Thursday and they agreed to maintain a current fuel price cap even after his new government is formed by mid-May.
"MOL has confirmed that an uninterrupted fuel supply of Hungary is guaranteed despite a turbulent global market situation," Magyar said in a statement on Facebook.
Details of the Fuel Price Cap
Background and Implementation
Magyar said the price cap, imposed by outgoing Prime Minister Viktor Orban in early March amid soaring oil prices, would remain in place both for petrol and diesel prices domestically and this would not burden the budget. He did not say when the measure could be phased out.
Political Context
Magyar's centre-right Tisza (Respect and Freedom) party won a landslide victory in Sunday's election, ending nationalist Orban's 16-year rule.
Impact of Russian Oil Supply Disruptions
Release of State Fuel Reserves
Orban released some state fuel reserves after a halt in Russian oil supplies through a key pipeline via Ukraine in January that Kyiv says was damaged in a Russian air attack. Magyar said on Wednesday that the government's actions over the next 20-30 days will be vital.
MOL Dividend Policy and MCC Involvement
Expectations for Dividend Payments
Magyar has also said he expected MOL not to pay out a record dividend to Orban-linked Mathias Corvinus Collegium (MCC) educational institution and think tank. After the meeting, he said "MOL would act in compliance with relevant legislation."
Ownership Structure and Share Distribution
MCC and State-Owned Shares
MCC was granted 10% of MOL's shares, previously owned by the state, by Hungary's Fidesz-dominated parliament in 2020. The institution was also given 10% of shares in Hungary's pharma company Richter.
Recent Dividend Approval
MOL's annual general meeting approved a total dividend payment of 241 billion forints ($779.03 million) for 2025, about 9% higher than the year before on April 10, just before the election.
Additional Information
($1 = 309.3600 forints)
(Reporting by Krisztina Than and Anita Komuves; editing by Philippa Fletcher and Nick Zieminski)
