Hungarian MOL’s fuel price increase in January happens in unexpected way

Here is the long-expected announcement of the Hungarian gas and oil giant, MOL. It concerns how the company plans to increase fuel prices in Hungary. The cause of the measure is an EU resolution, but each country – and company – can decide how they would like to adapt. Here is MOL’s way.

According to 24.hu, MOL will not increase fuel prices in Hungary from January the way everybody – even experts – thought.

Based on their latest statement, they decided to raise prices gradually, i.e. in two steps. MOL said that is because they focus on the interests of their customers.

The first hike in fuel prices will take place on 1 January. Meanwhile, the second will only come into effect on 15 January. First, the extra money we must pay for each litre of fuel will be HUF 20. Meanwhile, in the second phase, that amount will be HUF 21.

András Orosz, the company’s director of commerce in Hungary, added that the measure was a must because of an EU rule. The European Union prescribes the minimum level of fuel excise tax, and Hungary does not reach that level currently. Therefore, a fuel price rise is a must. Of course, the government could decrease VAT on fuel, but they do not intend to.

According to a March Portfolio analysis, fuel was very expensive in Hungary because the additional charge (which converts into the suppliers’, especially MOL’s revenue in Hungary) was the highest in Hungary in the region. Therefore, MOL could have done the most to reduce fuel prices, but it seems they will make the customers pay the EU’s extra tax.

Portfolio wrote in March that MOL kept that additional charge high because the Orbán administration’s fuel price cap was abolished only last December.

Hungarian MOL expanding services

Mr Orosz highlighted to Index that in the second half of 2023, fuel prices significantly reduced in Hungary. For example, in September, we had to pay HUF 100 more for each litre of gasoline at the Hungarian petrol stations than now. Considering last December, the price reduction reaches HUF 130-160.

MOL believes that the postponement of the HUF 21 price rise for two weeks is a considerable help for Hungarian families. They highlighted that technically, fuel prices will increase by HUF 41 from 1 January, but they will give us a discount of HUF 21 per litre.

Mr Orosz added that they would like to create service centres at their fuel stations. In that respect, they would like to extend their gastronomy services. For example, they sold 8 million hot dogs at the stations in 2022. In 2023, that number will exceed 10 million. They would like to create a community from their customers.

MOL Group increased their EBITDA from USD 2.5 billion to USD 2.8 billion this year.

Read also:

• Huge fire and smoke at Hungary’s largest refinery – Read more and check out a VIDEO in THIS article
• Brutal fuel price hike comes from January in Hungary

The MOL Campus in Budapest: