Economy 28 June 2024, 9:46am

Hungarian gov't calls on fuel retailers to cut their prices or else...

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As petrol is 4 forints more expensive in Hungary and diesel 18 forints more expensive than the average in neighbouring countries, the government is calling on fuel retailers to lower their prices below that level, the Ministry of National Economy said in a statement on Friday.

In Hungary today, 95-octane petrol is available at an average price of HUF 610 per litre and diesel at an average price of HUF 629 per litre. According to data published on Friday by the Central Statistical Office (KSH), based on European Commission data, the average price of petrol in neighbouring countries reached HUF 606, while the average price of diesel is HUF 611 per litre.

This means that petrol is HUF 4 more expensive and diesel costs HUF 18 more per litre in hungary than in neighbouring countries.

Based on the KSH report, the Ministry of National Economy has concluded that prices for both petrol and diesel need to be reduced.

Therefore, the government is calling on fuel retailers to return to the practice of previous months and reduce their prices to below the average price in neighbouring countries. Otherwise, the government remains ready to intervene in the fuel market.

Fuel prices were last raised on Thursday, which marked the seventh hike in Hungary in 14 days. Compared to 13 June, we pay HUF 20 per litre more for gasoline and HUF 33 more for diesel.

Let's see how fuel prices changed compared to four sort of arbitrary 'benchmarks':

End of 2023: petrol +7.0% (HUF 40), diesel +6.1% (HUF 36);
10 June (day after elections): petrol +3.4% (HUF 20), diesel +5.5% (HUF 33);
2024 peak: petrol -6.2% (HUF -40), diesel -4.8% (HUF -32);
Mid-January low: petrol +9.1% (HUF 51), diesel +7.2% (HUF 42).

In early May, a litre of diesel still cost HUF 14 less than a litre of petrol. By now, it is HUF 19 more expensive, as the gap returned to positive territory on 29 May and has widened to HUF 21 on 25 June.