By Foo Yun Chee

BRUSSELS (Reuters), Thierry Breton, EU’s chief of industry, told Hungary Wednesday that it would suspend fuel pricing discrimination against foreign-licensed vehicles or face being brought to trial. This was according to a European Commission correspondence seen by Reuters.

Another area of disagreement between Hungary’s European Commission is this move. The tensions between Brussels, Hungary’s Prime Minister Viktor Orban and Brussels have grown over the past months due to Budapest’s refusal to impose more sanctions on Russia.

Hungary had earlier said that trucks exceeding 7.5t and trucks with foreign plates exceeding 3.5t would be denied subsidised fuel at 480 Forints per litre. Instead, they would have to pay market rates.

Breton (the European Commission’s chief industry officer) stated that vehicles with license plates from EU countries will have to pay between 50-60% and vehicles with Hungarian plates for fuel. This is indirect discrimination, which goes against EU regulations.

Breton sent a letter asking for a reply to Hungary’s technology minister.

He wrote, “I also ask you to suspend application of the steps until their compliance has been assured.”

Breton stated that the European Commission has the authority to initiate urgent infringement proceedings, which could eventually lead to legal action against Hungary as well as possible fines.

Hungary claims that the increase in fuel use was caused by increased transit traffic and fuel tourism.

($1 = 367.1000 forints)