Fuel prices to be raised further in Hungary
The price of petrol will be raised by HUF 4 per litre, and the price of diesel will be taken HUF 7 per litre higher on Friday (5 April), holtankoljak.hu reported on Wednesday.
Accordingly, we should find the following (average) fuel prices at the pumps two days from now.
- 95-octane petrol: HUF 645 / litre
- Diesel: HUF 652 / litre
The price of petrol is going to be higher not only than at the end of last year (+13.2% or +HUF 75), but also than at the end of 2022 (+0.9% or +HUF 6). The price of diesel will have gone up 9.9% (HUF 59 per litre) this year come Friday.
The week before last, the Minister of National Economy has signalled to fuel market players again that domestic prices must be in the middle of the regional rankings, because if this is not achieved, the government will intervene.
In addition to the performance of the forint, fuel prices are determined by the international oil price. In recent weeks, we have seen a sharp rally in Brent, mainly driven by rising geopolitical tensions, but with growing uncertainty not only about supply but also demand.
Global crude oil benchmark Brent on Tuesday, April 2, crossed $88 per barrel to reach its highest mark in the past five months. The surge comes in the backdrop of the ongoing Russia-Ukraine conflict and the escalating tensions in the Middle East that have stoked fears related to oil supply.
- Suspected Israeli warplanes bombed Iran's embassy in Syria on Monday in a strike that Iran said killed seven of its military advisers, including three senior commanders, marking a major escalation in Israel's war with its regional adversaries.
- Mexico's state energy company Pemex requested its trading unit to cancel up to 436,000 barrels per day of crude exports this month as it gets ready to process domestic oil at the new Dos Bocas refinery, an internal document seen by Reuters shows. The move heightens concerns about the current supply shortage.
- The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, is scheduled to hold an online joint ministerial monitoring committee meeting (JMMC) at 1100 GMT to review the market and members' implementation of output cuts. Although the panel is unlikely to recommend any oil output policy changes, following the producers' earlier decision to extend voluntary oil output cuts until June, uncertainties about the outcome do drive oil prices higher.
- On the demand side, stronger-than-expected manufacturing PMI data in the US and China point to stronger-than-expected future demand.
As of 29 March, the price of petrol in Hungary (HUF 641) was no longer in the middle of regional rankings, and not even in the top third as before. It was the highest in the Central and Eastern European region, while the price of diesel (HUF 645) is "only" the second highest.
Cover photo: Getty Images
