The distribution of liquefied propane and butane gases and their compounds (hereinafter: LPG gas) in tank or cylinder (hereinafter: distribution of refillable LPG gas cylinders) includes the domestic commercial distribution of LPG gas in tanks or cylinders, its sale to resellers or consumers, transfer on commission to gas retailer in tank or cylinder - for the purposes of sale -, its procurement, storage and filling for the purposes above.

Specific regulations are applied by the Hungarian law for the service of refilling of LPG gas into bottles for tourists. Gas bottles for tourists are the bottles filled with LPG with a charge mass of max. 5 kg, intended for the fuel supply of gas operated appliances used for the purposes of tourism (cooking, heating and lighting).

The distribution of the refillable gas cylinders in the Standard Classification of Economic Activities (TEÁOR'08) belongs

• as retail activity, to the sector 47 Retail trade (with the exception of: motor vehicles, motorcycles), within that to the sub-sector 47.7 Retail trade of goods not classified elsewhere and sub-category 47.78 Retail trade of other new goods not classified elsewhere,
• as wholesale activity, to the sector 46 Wholesale trade (with the exception of: motor vehicles, motorcycles), within that to the sub-sector 46.7 Other specialised wholesale trade and sub-category 46.71 Wholesale trade of fuels.

Business companies are authorized to distribute LPG gas, which satisfy the conditions as follows:

1. its LPG gas distribution activity was entered in the company register,
2. its member, employee or subcontractor has the professional qualification or staff competence certification engaged in LPG gas distribution,
3. it has a gas procurement source necessary for the projected LPG gas distribution and a storage capacity of minimum 3000 cu.m at each cylinder filling depot or access to the use of such a storage facility in the country, under a rental contract effective for a definite period of time,
4. it has such business regulations for the sale of LPG gas, which take into account the interests of the consumers, ensure the safety of life and property in the course of using the gas, moreover, determines the rights, obligations and responsibility of the gas distributor, the retailer and the consumer,
5. it also has a third-party liability insurance for damage and loss in property, the environment, and third persons and the amount of the insurance coverage is min. 300 million HUF,
6. it performs its LPG gas distribution activities in a system of quality assurance, certified by an accredited quality assurance agency within a year from the date of starting the operations,
7. it has the depot necessary for performing the activity or a rental contract effective for a definite period of time to ensure the use of such a depot, the personnel and equipment to control an eventual case of emergency which might arise in the course of using the bulk gas or a contract to provide such a service.

In case of distribution of gas in cylinders, in addition to the requirements specified in section (1), the gas distributor shall have the following:

1. an LPG gas filling depot set up in the country and having a license issued by the mining authority, or a contract with a definite term for filling LPG gas either in Hungary or abroad,
2. a facility in the country for the periodical safety inspection of the cylinders, to an amount exceeding 6% of the number of cylinders distributed annually or a contract effective for a definite period of time concluded with a facility in the country or for using such facilities and performing such activities of comparable volume,
3. an inventory of wholly owned cylinders amounting to min. 5% of its annual LPG gas distribution turnover.

In case of the distribution of LPG gas in bulk tanks, in addition to meeting the general requirements, the gas distributor shall have two tanker trucks of min. 5 tons of payload capacity each, suitable for the transport of LPG gas or a contract valid for a definite period of time to secure an equivalent transport capacity.

The transfer of LPG gas into bottles to be used by tourists can be carried out by such gas retailers, who

1. with respect to himself or an employee actually performing the activity
   • is of 18 years of age or more,
   • has a license for the operation of a propane-butane cylinder exchange depot, a license for the operation of propane-butane gas racking and filling equipment, a special license for fire safety and
   • is aware of the provisions included in the technological instructions for the use of the refilling equipment,
2. has
   • at least a year-long contract with a gas distributor having a license for the distribution of LPG gas in compliance with the provisions of the relevant decree to serve the exchange depot necessary of the sale of LPG gas by it,
   • a calibrated balance for inspection purposes,
   • a wholly owned refilling equipment suitable for filling LPG gas into the bottles to be used by tourists or rented under a rental contract valid for a minimum period of one year,
   • a sufficiently detailed technological instruction drawn up for the use of the refilling equipment,
   • a risk assessment specific to the workplace, made by a labour safety expert for the review of the equipment and the technology.

The responsibility for the compliance of the LPG sold in retail in cylinder or tank and of the tank and cylinder containing the gas at the time of filling, shall be incurred by the gas distributor which fills the gas into the containers. The periodical inspection of the tanks and cylinders shall be ensured by the gas distributor filling gas into them - as the owner's lawful representative -, and by the owner of the bottle, in case of tourist gas bottles.

In case of a foreign trade contract for filling, pressure testing or cylinder repair to be carried out abroad, the gas distributor shall stipulate in the contract, for the safety of consumers, that an end product is released also in compliance with the  national safety engineering conditions, subject to an inspection by the mining authority to be carried out either independently or with the mediation of a foreign authority - under an international contract. With respect to these cylinders, the lawful representative of the cylinder owner shall be the gas distributor which had entered into a contract with the foreign partner. LPG gas filled into cylinders abroad can be distributed in Hungary only and exclusively by such gas distributors fully meeting all the relevant conditions of the legally effective regulations of this country, in gas cylinders in compliance with the Hungarian legal regulations.

The contracts shall be concluded for a year at least, in order to ensure the continuous availability of the facilities, assets, machinery and equipment and to meet the other conditions. The gas distributor shall continuously secure the specified conditions by entering into new contracts for min. one year before the termination of the previous contract.

In accordance with their activities, the gas distributors and gas retailers shall make arrangements so that the consumers receive the appropriate information related to the procurement and use of the LPG gas.

It is important to highlight that the LPG gas exchange depot belongs to the fire hazard category of "Enhanced risk of fire and explosion", regarding which the fire safety regulations specify particular requirements.

Procedures related to the start and continuation of the service activities

With respect to refilling LPG into bottles for tourists the acting authority with jurisdiction for the entire country shall be the Technical Supervisory Authority of the Hungarian Trade Licensing Office.

With respect to the distribution of other refillable gas cylinders the acting authority keeping the register of licensed and registered service providers shall be the Hungarian Office of Mining and Geology, as well as the regional mining authority.

The distribution of liquefied propane and butane gases and compounds thereof is an activity subject to licensing by the technical safety authority.

The gas distributor shall apply for a license at the mining authority with jurisdiction regarding his seat, for starting his gas distribution activity at least 90 days before the intended start of the activities. The application can be made verbally in person, or in writing, or by mail. At this point - for technical reasons - it is impossible to file an application by electronic means.

The application shall be judged by the mining authority within the general deadline of administration of 30 days. This deadline can be extended by the leader of the mining authority on one occasion, by 30 days.

If both the application and the applicant meet the legal requirements, the licence shall be issued by the mining authority.

A general procedure fee of 3 000 HUF shall be paid for the procedure. The fee shall be paid by means of stamp duty put on the application form when submitting the application.

The mining authority submits its resolution for licensing the gas distribution activity, for registering its becoming legally binding, to the Hungarian Office of Mining and Geology (hereinafter: Office). The Office enters the applicant in the register and publishes the name, registered seat and the licensed starting date of activities of the gas distribution company as a notice in the Official Gazette published as an annex to the Magyar Közlöny.

The Office grants free and unrestricted access for any person to the register data on its website.

For the register click here:  licensed gas distributors

For the register of cross-border service providers, please, click here: cross-border gas distribution service providers

In any other case the gas distributor shall notify the mining authority and the professional interest body 30 days before he intends to discontinue his LPG gas distribution activity. The Office shall remove from the register the service provider that announced the discontinuation of his activities. No levy or fee shall be payable for announcing the discontinuation of the gas distribution activity.

Licensing the refilling of LPG gas onto bottles used by tourists

The gas retailer shall apply for a license for starting his gas distribution activity at the Technical Supervisory Authority of the Hungarian Trade Licensing Office, before the intended start of his activities. The application can be made verbally in person, or in writing, or by mail. At this point - for technical reasons - it is impossible to file an application by electronic means.

The following documents shall be attached to the application

1. documents in original or copy of the certificate of examination of the operator of an LPG gas exchange depot, the examination of the operator of propane-butane gas extraction and refilling equipment and special examination of fire safety,
2. copy of contract concluded with a gas distributor having a license for LPG gas distribution for sale through LPG gas retailers,
3. documents in original or copy of the certificate of technical-safety inspection of equipment for refilling LPG gas into bottles for tourists.

The application shall be judged by the Technical Supervisory Authority of the Hungarian Trade Licensing Office within the general deadline of administration of 30 days. This deadline can be extended by 30 days on one occasion by the head of the authority.

If both the application and the applicant meet the legal requirements, the licence shall be issued by the Technical Supervisory Authority of the Hungarian Trade Licensing Office.

A general procedure fee of 3 000 HUF shall be paid for the procedure. The fee shall be paid by means of stamp duty put on the application form when submitting the application.

Announcing the distribution of refillable gas cylinders in the frame of cross-border service provision

The service provider having free right to provide services under the act on the general rules of starting and continuing service activities shall announce his intention to distribute liquefied propane and butane gases and their compounds in tanks and cylinders and refilling LPG gas into bottles for use by tourists, in the framework of cross-border service provision, to the technical safety authority, i.e.

1. in case of refilling LPG gas into bottles for use by tourists to the Technical Supervisory Authority of the Hungarian Trade Licensing Office,
2. in case of other gas distribution activities to the mining authority with regional jurisdiction.

The announcement shall be valid for five years in case of cross-border service providers.

The start of refillable gas cylinder distribution activities in the framework of providing cross-border services can be reported, verbally in person, in writing or by mail, to the technical safety authority, i.e.:

1. the Technical Supervisory Authority of the Hungarian Trade Licensing Office, in case of refilling LPG gas into bottles to be used by tourists,
2. the mining authority with regional jurisdiction in case of other gas distribution activities.

The announcement for starting the distribution of refillable gas cylinders shall include the data as follows

1. name and registered seat of the service provider engaged in the activities of the distribution of refillable gas cylinders,
2. the designation of the type of service activities intended to be pursued by the service provider,
3. citizenship of the service provider, in case of a legal entity registered in another EEA State, or an organisation having no legal personality, the denomination of register of the EEA State according to the registration, and the registration number of the service provider,
4. designation of the EEA State in accordance with place of settlement of the service provider
5. the statement of the service provider that he intends to carry on the distribution of refillable gas cylinders in the framework of cross-border services, and
6. denomination of the authority issuing the licence or maintaining the register and the number or registration number of the service provider’s licence, if the service activities of the service provider is subject to a licence or registration in the EEA State in accordance with the place of settlement of the service provider.

For the announcement of the distribution of refillable gas cylinders, the stamp duty certifying the payment of levy payable for the procedure shall be attached.

The technical safety authority shall immediately after the receipt of the announcement check whether the announcement meets the material legal requirements, and if the announcement meets the requirements and the fee for the procedure was paid, then in eight days from the receipt of the announcement at the latest, shall inform the person making the announcement about his circumstance by sending a certificate.

The operator shall pay the general procedure fee of 3 000 HUF for the procedure. The fee shall be paid by means of a duty stamp affixed on the document of the announcement.

Cross-border service provision

If you wish to launch this service in the form of cross-border service provision, please click here to read the general conditions of cross-border service provision in Hungary.

Legal regulations applicable to the services activity and the procedures

1. Act XL of 2008 on natural gas supply,
2. Decree No. 94/2003. (XII. 18.) GKM on the rules and authority supervision of distribution of liquefied propane-butane gases and their compounds in tanks or cylinders,
3. Decree No. 28/2011. (IX. 6.) BM on the National Fire Safety Code,
4. Govt. Decree No. 267/2006. (XII. 20.) on the Hungarian Office for Mining and Geology,
5. Government Decree No. 320/2010. (XII. 27.) on the Hungarian Trade Licensing Office and the regional metrology and technical supervisory authorities,
6. Act LXXVI of 2009 on the general rules of starting and continuing the service activity,
7. Act CXL of 2004 on the general rules of public administration authority procedure and services,
8. Act No. XCIII of 1990 on the levies and duties,
9. Decree No. 21/2010. (V. 14.) NFGM on qualifications required for pursuing certain specific activities of industry and trade.