Hungary's gas market should be deregulated to allow consumers greater choice, an Energy Office representative said yesterday, adding that EU regulations for telecoms should serve as a model. Despite the partial deregulation of Hungary's gas market at the beginning of 2004, there is still no real competition because of the continued existence of quasi-monopolies (currently MOL controls production, import, storage, transmission and wholesale). According to the Hungarian Energy Office, the biggest players should be determined on the market and set ground rules in the interest of creating greater competition. We consider the news as neutral for MOL, as it has almost entirely stepped out from the gas business. Since the return on the transmission business is regulated by law, profits of the company are unlikely to be affected. We keep our Buy recommendation on the stock with a price target of HUF 25,730.