Fuel prices in Hungary have fallen below the government’s protected price threshold, paving the way for the planned abolition of the measure introduced to shield consumers from high energy costs.
According to fuel price monitoring website Holtankoljak.hu, the average market price of 95-octane petrol dropped to HUF 592 per litre on Friday, while diesel fell to HUF 614 per litre.
Both figures are now below the current protected prices of HUF 595 per litre for petrol and HUF 615 per litre for diesel.
Industry analysts had previously predicted that fuel prices would soon fall beneath the protected level due to improving international market conditions.
Further price cuts expected this weekend
The downward trend is set to continue, according to market data. From Saturday, the wholesale price of petrol will decrease by a further HUF 7 per litre, while diesel wholesale prices will fall by HUF 10 per litre. If these reductions are fully reflected at filling stations, motorists could soon see prices significantly below the protected threshold that has been in place in recent months.
Government begins process of abolishing protected fuel prices
Prime Minister Péter Magyar announced on Wednesday that the government would initiate the removal of the protected fuel pricing system, arguing that market prices were already expected to fall 10–15 forints below the regulated level. The government formally submitted the relevant legislation to Parliament on Thursday evening.
According to the proposal, improving international energy market conditions have reduced the need for state intervention in fuel pricing. Parliament could debate and approve the legislation as early as next week under an accelerated procedure.
Fuel cap could return if market conditions worsen
While the proposal would abolish the current protected fuel prices, it would also create a mechanism allowing the government to reintroduce regulated fuel prices in the future if necessary. Under the draft legislation, the minister responsible for trade policy would be authorised to set official prices for petrol and diesel by decree if market conditions change dramatically and state intervention becomes necessary to protect consumers, HVG reported.
The proposal would also preserve enforcement powers for Hungary’s tax authority, which would continue to monitor compliance with any future regulated prices. Businesses violating such rules could face fines ranging from HUF 100,000 to HUF 150 million, while repeat offenders could be forced to suspend operations for up to six months.
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