1. Biofuels and strategic stocks in Hungary Bratislava, 20th April, 2015

2. Biofuels in Hungary Act on biofuels imposes obligation on fuel suppliers to put certain quantity of biofuels on the market Fuel types in Hungary E5 or E10 B7 E85 Extra tax on fuels not complying with national fuel standards (Excise Duty Act) 201220132014201520162017201820192020 4,8 4,95,15,56,16,97,69,5 National Renewable Action Plan for road transport Bratislava, 20th April, 2015 2

3. Biofuel obligation in Hungary Given in e% of diesel and petrol sold on the market (biofuel quota) 2013: 3.1 e% of petrol, 4,4 e% of diesel 2014-2015: 4,9 e% for both Biofuel quantity (Q b ) can be calculated by this formula (Q p and Q d are the petrol and diesel quantities) SALE of fuels (Q) Volume, in litre Volume, in MJ Obligation, e% Volume of biofuel, MJ Petrol (32 MJ/l)10032003,199,2 Diesel (36 MJ/l)10036004,4158,4 Obligation in MJ 257,6 Calculation of obligation in 2013 Biofuel quota to be met by any combination of biofuels – blended in accordance to fossil fuel standards or pure biofuels Biofuels produced from waste, residues are taken into account twice – double counting rule There is a penalty for non-compliance, proportional to the biofuel quantity which was not put on the market Q p x 3.1% + Q d x 4.4 %= Q b Bratislava, 20th April, 2015 3

4. E10 labelling Hungarian decree on fuel quality: it must be indicated in a well visible and easily readable way on the pump if a gasoline contains more ethanol than 5 V% and/or more oxygen than 2.7 %. MÁSZ proposed the following to members and white pumpers: “E10” must be indicated on the pump there must be a separate table on the pump which informs consumers that E10 may not be used in all vehicle with Otto engine. Proposed text: ATTENTION Before using E10 read this information material by all means. Use this fuel just in case you are convinced that its application is free of risk! E10 may be used just in those vehicles where the engine manufacturer explicitly allowed or approved it. If it is not unambiguous for you if your vehicle can run on E10 you have to ask for the opinion of the manufacturer prior to its use. You should decide on application of E10 if it is allowed/approved by the manufacturer. In any other case you apply E10 on your own risk. The station, the seller and producer of E10 excludes liability for direct or indirect damage which is generated in the vehicle not suitable for application of E10 or were generated in person or good due to unsuitability of the vehicle. OPERATORS OF STATION Bratislava, 20th April, 2015 4

5. Emergency stocks Bratislava, 20th April, 2015 5

6. De-marking „ Produce” diesel fuel from heating fuel to benefit from tax difference Misclassifying products Non-taxed product (base oil) Smuggling Ukrainian border Special cars Fraud types in Hungarian fuel market Stopped since 2000 Bratislava, 20th April, 2015 6

7. Fuel marking Act on stockpiling ordered compulsory marking of fuels Details of marking in a ministerial decree Notification of the decree to TRIS 3 detailed opinions (Commission, Poland and Austria) Correspondence between the HU government and the Commission Proposal submitted to the Hungarian Parliament to abolish marking obligation Bratislava, 20th April, 2015 7

8. The flashpoint problem Excise Act: extra tax should be paid on off- spec fuels (15 cent/l) It protects consumers and helps inspection Diesel flashpoint can change during transportation (but accompanying documents, quality certificate shows that the product is in line with the standard) Customs Authority’ interpretation o Product is off-spec, so extra tax to be paid o Product comes from illegal source Bratislava, 20th April, 2015 8

9. www.petroleum.hu