Hungarian motorists are facing another sharp increase in fuel prices, with diesel reaching its highest level in almost four years. Further price rises could follow as the situation in the Middle East pushes up oil prices, but the government says it has no plans to bring back the previous fuel price cap.
Fuel prices have jumped significantly at Hungarian petrol stations, with the average price of 95 petrol rising by HUF 8 per litre and diesel by HUF 9 compared with Friday. According to the latest figures from Holtankoljak, the national average prices now stand at:
- 95 petrol: HUF 617 per litre (EUR 1.7)
- Diesel: HUF 697 per litre (EUR 1.92)
The latest diesel price is particularly striking: it has not been this high since December 2022, according to Portfolio.
Why are fuel prices rising?
Several factors are putting pressure on the Hungarian fuel market. The restrictions on Russian diesel exports, production disruptions at Russian refineries and escalating tensions in the Middle East are all contributing to higher prices.
The renewed conflict in the Middle East could prove particularly important in the coming days. Eszter Bujdos, head of the Hungarian Mineral Oil Association, said there is a strong possibility of further increases because the latest attacks have not yet been fully reflected in market prices.
The price of Brent crude is currently around USD 95 a barrel, and it could climb further if tensions continue to escalate. That could quickly translate into higher prices at Hungarian filling stations.
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Government rules out bringing back the price cap
Despite growing pressure on motorists, the government does not currently intend to reintroduce the protected fuel price that was previously used to limit pump prices.
János Bóka, the former minister responsible for European Union affairs, has pointed to previous statements by Prime Minister Péter Magyar and Economy and Energy Minister István Kapitány during the election campaign regarding fuel prices and price protection.
The previous government introduced a fuel price cap during the energy crisis, setting the protected price at HUF 595 per litre for petrol and HUF 615 for diesel. Today’s averages are already more than HUF 10 above the former petrol cap and more than HUF 70 above the former diesel price.
The government is nevertheless looking for ways to ease the burden on motorists. Magyar has discussed the problem with István Kapitány as part of talks about the challenges facing Hungary’s economy and energy sector. However, the prime minister has indicated that simply restoring a price cap would not be the preferred solution.
The government wants measures that would reduce the pressure on drivers without creating fuel shortages or costing the state budget tens of billions of forints every month.
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Could taxes be changed instead?
Energy expert Attila Holoda has suggested that changing the tax burden on fuel could be one possible solution, ATV reports. If the government wants to protect motorists from international price shocks, it could potentially adjust the tax structure rather than impose a fixed retail price.
However, such measures would have their limits. If international fuel prices and the price of crude oil rise substantially, Hungary is likely to feel the impact just like neighbouring countries. In other words, government intervention could soften the blow, but it cannot completely isolate Hungarian motorists from developments on global energy markets.
Hundreds of small petrol stations under pressure
The latest price surge is also raising concerns about the survival of smaller, independent petrol stations. The Association of Independent Petrol Stations (FBSZ) has sent an open letter to Prime Minister Péter Magyar, warning that the situation in Hungary’s fuel retail sector has become increasingly difficult.
The association estimates that 600–700 mainly Hungarian-owned family businesses could be directly affected and some are already approaching insolvency.
According to the organisation, the difference between fuel prices and the wholesale and retail pricing structure set by MOL is currently insufficient to cover the operating costs of many smaller businesses. The FBSZ is calling for immediate government intervention and a comprehensive investigation of the Hungarian fuel market.
It also claims that international fuel supply, particularly diesel, has become highly unstable, with two major traders reportedly announcing restrictions or suspensions affecting supplies to certain independent filling stations.
Why price caps can hurt smaller stations
Independent petrol stations can be particularly vulnerable when the government intervenes directly in retail fuel prices. During previous price-cap measures, so-called “white stations” (independent, unbranded filling stations) faced intense pressure because their margins were squeezed while consumers often preferred larger branded chains, according to Telex.
Major fuel companies have deeper financial reserves and can potentially absorb losses for longer. Smaller, family-owned operators have much less room to manoeuvre. This creates a difficult balancing act for the government: protecting motorists from rising prices while avoiding measures that could drive independent petrol stations out of business or create shortages.
Diesel could stay more expensive than petrol
There is also concern that diesel prices could remain elevated for an extended period. Bujdos said motorists should not expect a diesel shortage, but warned that supply risks in the diesel market have increased, making the fuel more expensive to secure.
She expects diesel to remain available but believes its price could stay high. The gap between petrol and diesel prices may eventually narrow, but diesel is expected to remain more expensive than petrol for the rest of the year. That would have consequences well beyond motorists.
A large proportion of road freight is carried by diesel-powered vehicles. If diesel prices remain high, transport companies could eventually pass their higher costs on to customers, potentially contributing to higher prices for goods across the Hungarian economy.
