Slovakia Contemplates Fuel Price Controls to Combat 'Fuel Tourism'

Slovakia's Prime Minister Robert Fico announced potential regulations to raise diesel prices or limit refueling for foreign drivers to curb fuel tourism. Slovnaft reported increased purchases due to cheaper fuel prices compared to Poland, causing fuel shortages. The government seeks to ensure competitive fuel prices compared to neighboring countries.

Slovakia is weighing the introduction of regulations to set higher diesel prices at local fuel pumps for foreign drivers or to restrict the amount of fuel they can purchase. Prime Minister Robert Fico revealed these measures on Tuesday as part of an effort to protect against the rising phenomenon of fuel tourism.

The announcement follows a warning from Slovnaft, part of Hungary's oil and gas giant MOL, indicating that certain northern districts close to Poland have seen a significant increase in diesel purchases due to more affordable fuel prices on the Slovak side of the border. Fico cited cases where gas stations have 'literally dried up,' underlining the severity of the issue.

As global fuel prices soar, partly due to exacerbated tensions from the Iran war, Slovakia's approach remains distinct. While Hungary has implemented fuel price caps and Poland's major refiner, Orlen, has reduced its margins to mitigate consumer impact, Slovakia has so far relied on sellers' self-regulation. Fico emphasized the government's aim to maintain fuel prices competitive with neighboring countries like Poland, while ensuring they remain more affordable than in Austria.

(With inputs from agencies.)