Fuel prices in Hungary expected to skyrocket in 2023

Experts expect a significant rise concerning fuel prices in Hungary in the second half of 2023. As a result, we may have to pay more than HUF 800 (EUR 2) per litre for gasoline and diesel, an undisputable historic high.

The Hungarian motorists are in the hands of Beijing

Tamás Pletser, an oil and gas industry analyst of Erste Bank, told Világgazdaság that in the first half of 2023, fuel prices would be lower. The reason for the anticipated soaring fuel prices in the second half is China’s reopening. That is when experts think the outbreak of the COVID epidemic will end in the country.

As a result, the Asian giant will siphon off all available raw materials and energy, resulting in skyrocketing prices on the market. For example, a barrel of crude oil may cost more than USD 100 from this June-July, Mr Pletser said.

Furthermore, the EU sanctions on Russian oil products will also worsen the situation. That will be in effect from this February. Since Russia is the biggest oil product supplier of the continent, such sanctions will have considerable effect on Europe, including Hungary. Markets are already preparing for that problem and are making an effort to pile up enough reserves.

Pletser said that the National Bank of Hungary and the government are protecting the forint. Therefore, the national currency will not exceed the 400/EUR threshold again, he believes. As a result, the weak or strong dollar will not affect the Hungarian fuel market significantly, he cleared. However, now it seems that the Hungarian motorists “are in the hands of Beijing”.

• Read also: The price of gasoline is the most expensive in the region in Hungary and will continue to rise

Hungarian public media: Sanctions not being used to pursue peace

Sanctions are not directed towards securing peace talks, according to pundits on a Hungarian public television discussion show.

Tamás Lánczi, the show’s host, said the European Commission had recently published a “victory report” on sanctions against Russia, and Belgian liberal MEP Guy Verhofstadt had said on Twitter that none of the nine sanctions packages were working, but had concluded nonetheless that failed sanctions could be turned to success by intensifying them, the hirado.hu website reported.

Political scientist Zoltán Kiszelly said trade between Russia and most EU states had increased in 2022 compared with the previous year, while larger Asian states were passing on cheap Russian energy to Europe, with Turkey a big beneficiary.

Former green politician András Schiffer said western states were not using sanctions to force peace negotiations, and the EU was swayed by powerful companies that were asserting their own interests, with the military industrial complex “benefitting the most”, while LNG companies were also influencing the EU.

Átlátszó journalist András Hont said the West wanted to divide the world into moral and immoral players and tried to guarantee security “without getting its hands dirty”.

Historian Gábor Megadja said Brussels politicians were failing to draw logical conclusions from the facts.

Read alsoOrbán: we have no interest in severing all economic ties with Russia – interview

Source: MTI, Világgazdaság