(Corrects to remove reference to foreign-registered cars in paragraph 4) March 18 (Reuters) - Slovakia's government on Wednesday approved a resolution allowing service stations to set higher diesel
Slovakia allows stations to set higher diesel prices for foreigners, limit sales on supply concerns
Slovakia Implements New Diesel Pricing and Sales Restrictions Amid Supply Fears
Government Resolution and Rationale
March 18 (Reuters) - Slovakia's government on Wednesday approved a resolution allowing service stations to limit diesel sales, and also set higher prices for cars with foreign plates as it clamps down on "fuel tourism".
Slovakia has sought to secure supplies as global energy prices have surged due to the Iran war, and as the country's Russian crude deliveries through the Druzhba pipeline have been interrupted due to damage to the line in Ukraine.
Regional Impact and Responses
European Context
Other European countries are feeling the effects of the U.S.-Israeli war on Iran, now in its third week, as one-quarter of the gasoil and diesel exports through the critical Strait of Hormuz were sent to Europe last year. Hungary has capped fuel prices, while Poland's main refiner Orlen has cut its margins to reduce the hit to consumers.
Details of Slovakia's Measures
Sales and Pricing Restrictions
Under Slovakia's new resolution, fuel pumps can limit diesel sales to a full tank and up to 10 additional litres.
Exports will also be limited, and prices of diesel for foreign-registered cars can be set differently, based on the average of prices in neighbouring Czech Republic, Austria and Poland.
The measures will be valid for 30 days and do not concern gasoline.
Government Justification
Prime Minister's Statement
Prime Minister Robert Fico said the limits are necessary to stem the surge of diesel sales to people from Poland driving across the border seeking Slovakia's cheaper fuel.
"There has been a situation where dozens of gas stations in northern Slovakia have literally dried up," he said.
Supply Chain and Diplomatic Tensions
Druzhba Pipeline Disruption
Because of the Druzhba outage, the Slovak government has released state reserves for refiner Slovnaft, owned by Hungarian oil and gas group MOL, while it gets alternative supplies.
Slovakia has been in a sharp dispute with Ukraine over Druzhba supplies, accusing Kyiv of dragging its feet on restarting the pipeline. Ukraine denies this, saying repairs after a Russian strike still need time.
Reporting Credits
(Reporting by Jason Hovet in Prague, editing by Andrei Khalip and David Gaffen)
