Hungary’s new economy and energy minister, István Kapitány, has indicated that the government could keep its fuel price caps in place well beyond the current 30 June deadline, citing high global oil prices and the need to protect households.

Speaking to RTL Híradó, Kapitány said the cabinet would review the situation in June, but did not rule out extending the measure into the second half of the year. The minister argued that ongoing geopolitical tensions continue to push crude oil prices upwards, making state intervention necessary.

At present, petrol prices are capped at HUF 595 (EUR 1.65) per litre, while diesel remains fixed at HUF 615 (EUR 1.71). The scheme was originally introduced by the government of former Prime Minister Viktor Orbán on 10 March and was later retained by the new Tisza-led administration formed in May.

Strategic reserves released to maintain fuel price caps

To keep the fuel price caps, the government has authorised the release of 575 million litres of fuel from Hungary’s strategic reserves. According to the Hungarian Petroleum Association, the additional supplies should guarantee stable fuel availability until the end of June.

The decision followed warnings from fuel retailers and MOL, Hungary’s largest oil company, that strategic diesel reserves allocated to filling stations were close to depletion. Independent petrol station operators have also raised concerns over shrinking profit margins and the burden of extra taxes while being forced to sell fuel at regulated prices.

Despite these concerns, MOL insisted that Hungary’s fuel supply remains stable and that both petrol and diesel continue to be available nationwide through the company’s own production capacities.

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Economists warn of shortages

The possible extension of the price cap has sparked criticism from several economists. In a recent open letter, a group of 12 Hungarian economists urged the government to phase out the measure to avoid potential supply shortages and market distortions.

Fresh data from Hungary’s Central Statistical Office (Központi Statisztikai Hivatal, KSH) also showed that fuel consumption in March rose by roughly 20% compared with the same period last year, reflecting increased demand driven by the lower prices.

Read more on the price cap saga: How long can Hungary sustain fuel price caps? Experts are increasingly worried

Featured image: Daily News Hungary