BUDAPEST: The European Commission on Friday, July 15,  started an infringement procedure against Hungary for its discriminatory fuel price policy and took Budapest to the European Union court over a law banning LGBTQ ("lesbian, gay, bisexual, transgender, intersex, queer/questioning, asexual) content to minors and the closure of an independent radio station.

In response to the European Commission initiating an infringement case against it earlier, the Hungarian government justified its decision to control fuel prices by citing the necessity to safeguard its supply security.

The European Union (EU) Executive said in a statement on Friday that "the Commission has decided to start an infringement procedure against Hungary for having enacted measures going against Internal Market regulations." According to media report, the Commission recalled that Hungary had set separate fuel rates for cars with foreign license plates and those with Hungarian license plates.

The latter group, which includes tractors and agricultural equipment with Hungarian documentation, is entitled to official gasoline costs that are 60 to 70 percent lower. The Commission stated that "all other vehicles with a foreign number plate cannot benefit from such discounted costs."

On November 15, 2021, the Hungarian government set a cap on the price of petrol and diesel at 480 forints (USD1.21) per litre, and it has since extended the restriction through October 1, 2022. The cost per litre is more than 800 forints without the cap.

The Commission has urged the Hungarian government to abide by the terms of EU law regarding the unrestricted flow of goods and services throughout the single market, including transportation services.

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