Hungarian Government Proposes Fuel Price Intervention Amid Rising Oil Prices and Price Disparities

Hungarian Minister for National Economy Márton Nagy announced during a press conference at the Ministry of National Economy that he will propose fuel price intervention to the government. He confirmed that this measure would not lead to supply issues and explained that lowering profit margins does not necessarily mean selling fuel at a loss. The Minister also expressed concerns about price trends not aligning with previous agreements and stressed the importance of adhering to regional averages.

At a recent interview with Index, Minister Nagy discussed his proposal for fuel price intervention, which he plans to present at an upcoming cabinet meeting. He emphasized the need for corrective action, stating that petrol prices would deviate by 3% and diesel by 5% from the regional average. Additionally, he announced that while petrol prices would remain the same, diesel prices would see an HUF 8 reduction.

The Minister highlighted the timely nature of this adjustment, particularly in light of increasing oil prices due to conflicts in the Middle East. He pointed out the benefits of the government’s decision for families, despite retailers feeling overcharged. He also discussed tax cuts, emphasizing Hungary’s average tax rate in the region and critiquing the disparity between local fuel prices and regional averages.

During his speech, Minister Nagy stressed the importance of aligning regional prices and investigating any discrepancies. He pledged to hold accountable any party responsible for price disparities and made it clear that reducing profit margins would not force retailers to sell fuel at a loss. Finally, he shared average fuel prices on April 24th, 2024 with petrol priced at HUF 648 (EUR 1.64) and diesel at HUF 640 (EUR 1.62) according to holtankoljak.hu.

In conclusion, Hungary is taking proactive steps to address rising fuel prices due to conflicts in the Middle East by proposing fuel price intervention. This measure will not result in supply issues and will ensure that families benefit from lower costs while still allowing retailers to maintain profitability. The government is committed to ensuring fair pricing practices across all regions in Hungary through corrective action if necessary and holding accountable any party responsible for pricing disparities.