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.