Insight
Downstream oil in brief: price caps and tax cuts to curb high fuel prices
Report summary
As fuel prices remain high in Europe, several countries have implemented temporary measures to artificially reduce prices. By doing so, governments aim at preventing long-term structural inflation. Although some countries decided to absorb the hit by cutting taxes, others introduced price caps, resulting in heavy losses for retailers. The radically lowered prices have already taken their toll on companies operating in Hungary. Our report also examines why there is no single solution for increasing fuel prices.
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