Brutal hike: MOL CEO shared how much fuel prices will increase in Hungary!

Zsolt Hernádi, the CEO of the Hungarian gas and oil giant MOL, shared how much fuel prices would go up from next January. Brace yourselves! The number is considerably high.

According to portfolio.hu, Mr Hernádi said fuel prices would increase by HUF 41 from next January because of the rise of the excise tax on the product. The Hungarian economy-focused media outlet wrote before that fuel prices might reach HUF 700 next January, provided the government does not change the excise tax rate announced this summer.

Hernádi added that the price rise’s cause is an EU measure, so it is inevitable. He highlithed that if the fuel prices decreased, fuel purchase tourism would restart. Because of the lack of that, people bought 20% less fuel in 2022. Therefore, the government should never introduce a price cap on fuels.

He said that Brent-type crude oil’s price rose above USD 90 due to the war between Israel and the Hamas. However, there was no supply shock. He added the market was afraid of an escalation, so every eye was on Saudi Arabia and Iran. That is because a 1% production fall would mean a 10% rise concerning oil prices.

Hernádi mentioned Türkiye, Azerbaijan and Kazakhstan as key countries in Hungary’s energy market. Türkiye provides gas, MOL’s greatest investment is in Azerbaijan, while in Kazakhstan, they exploit Ural-type crude oil, which can be processed in Hungary.

Higher excise tax rise because of the weak forint?

Magyar Nemzet, a government-close news outlet, wrote in August that the Hungarian excise tax on fuels would be one of the lowest concerning gasoline (preceded only by Romania and Bulgaria). Considering diesel, it will be in the European average.

Critics said that the government increased the excise tax more than the EU’s bid. Therefore, instead of HUF 10-20, the price rise will be more than HUF 41. However, the Orbán cabinet believes that the higher increase will help the system to survive even a weak forint. The European Union prescribes the minimum excise tax in euros (EUR 0.359). As a result, a weak Hungarian national currency might mean it does not comply with the European directive. Thus, Budapest would risk another infringement procedure.

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