http://bbjonline.hu/index.php?col=10...

MOL to build July tax increases into fuel prices

Monday 11:07, May 25th, 2009

Hungarian oil and gas company MOL will have to fully build July increases in Hungary's VAT rate and excise taxes into the company's fuel prices, MOL Chairman-CEO Zsolt Hernadi told MTI.

MOL did the same earlier when the VAT was cut, Hernadi noted. He refused to speculate whether fuel prices would climb back to HUF 300 per liter as a result of the tax increases. He said it was difficult to project how retail sales of vehicle fuel will develop in Hungary but they certainly would not decline to the same magnitude as Hungary's expected GDP contraction of over 6% this year. The company will be able to compensate for any decline in domestic fuel consumption through export sales, said the MOL Chairman-CEO. Research suggests that the Mako (S Hungary) gas field, developed with Exxon as the main contractor, could contain 340 billion cubic meters of natural gas. Development of this field is likely to begin in two or three years. (MTI-Econews)