Drastic fuel price rise in Hungary from Wednesday!

Gasoline price will increase by HUF 12, while we will have to pay HUF 15 more for diesel from this Wednesday. Fuel price spikes are becoming more and more frequent in Hungary. On 10 May, gasoline cost HUF 555/l, while diesel was valued at HUF 543/l. After the price rises, gasoline will be HUF 622/l (EUR 1.61), while diesel will cost HUF 613/l (EUR 1.59).

According to index.hu, Wednesday will mark another crucial price increase concerning fuel in Hungary. After the rise, gasoline type 95 will cost HUF 622/l (EUR 1.61), while we must pay HUF 613/l (EUR 1.59) for diesel. For example, in Romania, gasoline type 95 costs only 518-527 (EUR 1.33-1.37). Therefore, it is not surprising that many Hungarians drive to their eastern neighbour to fill up their fuel tanks (and even their food basket because of the lower prices), index.hu wrote. Interestingly, MOL sells fuel in Hungary and Romania, as well. However, the same product is more expensive in Hungary where it has its headquarters, than in Romania.

The last time fuel prices soared in Hungary was last Friday. Then gasoline prices went up by HUF 13, while we paid HUF 12 more for diesel. The negative trend is down to the poor currency exchange rate of the forint and the global market price of the oil. Ottó Grád, the Secretary General of the Hungarian Petroleum Association, said that he hopes the fuel prices will not increase further but remain in the HUF 600-630 interval. In the next few days or weeks, fuel prices will be forint-sensitive. If the forint strengthens, prices will stagnate. However, provided forint loses its value, just as what happened today, further price rises are expected.

Fragile forint, no EU support – pricey fuel

Eszter Bujdos, the CEO of holtankoljak.hu, reminded us that analysts calculate with lower crude oil prices. Most reckon it will be around USD 75/barrel, which is good news even for the Hungarian market.

Former Hungarian Energy Deputy Secretary Attila Holoda told napi.hu that fuel prices would remain high in Hungary as long as the economy is struggling and the forint performs below expectations. He believes Hungarian fuel prices will start with the number 6 for a long time. He added that provided Hungary used the euro, fuel prices could be lower since we would not have to buy crude for the euro. Furthermore, MOL produces fuel from Brent and Ural, and the price difference between them is no longer USD 25-30 like in 2022 but USD 12-15.

Mr Holoda said the forint is fragile because the Hungarian economy lacks financial sources. Besides, the delays in the arrival of EU funds and the expensive less favourable loans are also contributing factors.