The European Commission has ordered Hungary and Slovakia to end fuel pricing systems that charge foreign motorists higher rates than residents, calling the measures illegal under EU single market rules. The crackdown targets protections introduced in March amid soaring energy costs linked to the Iran conflict, with Slovakia fixing diesel prices below neighboring rates and Hungary capping local driver costs while taxing foreign plates.

Brussels sent formal warnings and threatened legal action within two months if the countries don't comply. The move underscores EU efforts to enforce market uniformity despite member state attempts to shield consumers from volatile energy prices. A Bruegel think-tank estimate shows European governments have deployed over €10bn in fiscal measures, including fuel tax cuts, to offset war-driven energy bill spikes across the bloc.

Slovakia's Prime Minister Robert Fico defended the policy as "positive discrimination" against "fuel tourists" from Poland, claiming border stations ran dry due to price gaps. Hungary's system reverses this, imposing market prices on foreigners while capping local costs. Despite the rebuke, the Commission approved new state aid rules allowing member states to subsidize up to 70% of extra energy costs for farmers, fishers, and transport sectors.

The warning comes as Hungary's incoming Prime Minister Péter Magyar committed to maintaining fuel price caps without burdening the budget, while the Commission also referred Hungary's windfall tax on retail profits to the European Court of Justice. These actions highlight the tension between national consumer protection and EU market integrity.