Fuel prices in Hungary set to soar as government plans new tax hike on gas stations

The government is planning a tax increase that could soon drive up fuel prices significantly in Hungary, warns the Association of Independent Gas Stations. According to the association, fuel is already “heavily taxed,” and they strongly condemn this retroactive taxation policy, which they argue unfairly burdens citizens and puts smaller gas stations in a challenging position.

Fuel prices to increase significantly

The association raised concerns over proposed changes to the energy efficiency law, which would require gas stations to pay considerably higher taxes on their 2023 sales under the Energy Efficiency Obligation System (Energiahatékonysági Kötelezettségi Rendszer), ATV reports.

Photo: MOL

“In Hungary, it’s local consumers and citizens who will bear the cost, rather than large energy users alone. This method of taxation is extremely unfair,” said Gábor Egri, president of the Association of Independent Gas Stations (Független Benzinkutak Szövetsége). “For gas stations, the 2025 declaration for our 2023 energy use already shows a steep increase, with tax set at HUF 17 per litre, which equals HUF 50,000 (EUR 124) per gigajoule. By 2027, this will rise to HUF 32 per litre,” Egri explained, adding that this burden has already impacted consumers’ wallets, and the planned increase could push fuel prices even higher.

A tax expert interviewed by ATV News noted that retroactive taxation, especially applying to obligations from 2023, is quite unusual. “The government technically has the authority to introduce any new tax or levy, but professionals and the association don’t see this as fair. Fuel price comparisons globally and across Europe don’t factor in this tax, which can make it misleading since, as you mentioned, the added tax content per litre will now be about HUF 17-18,” said Gábor Csongár, a tax specialist.

The expert also pointed out that the government’s tight budget is evident, further illustrated by its failure to adjust the income tax exemption threshold, despite public expectations for an increase.

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