Hungary faces sharp fuel price increases – here are the reasons why
Hungarian motorists are set to face a significant increase in fuel prices this week as global oil markets react sharply to the latest round of US sanctions against Russia’s major oil producers. The move, announced by President Donald Trump, targets energy giants Rosneft and Lukoil, triggering a surge in Brent crude prices and marking the most substantial sanctions since his return to the White House.
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Fuel prices in Hungary rise again
From Tuesday, October 29, the wholesale price of petrol in Hungary will rise by HUF 5 per litre (€0.013) and the price of diesel by HUF 10 per litre (€0.026), according to Holtankoljak.hu.
As of Monday, average retail prices remain:
- 95-octane petrol: HUF 574 (€1.47) per litre
- Diesel: HUF 578 (€1.48) per litre
The Brent crude benchmark rose by about 5% in one week, climbing from USD 60 to nearly USD 65 per barrel — the sharpest increase in months. Analysts attribute this directly to the new sanctions, which limit Russia’s ability to export oil to global markets.
Despite these market tensions, the Hungarian forint has remained relatively stable, trading around HUF 334 per USD, slightly stronger than a week ago.
Why are oil prices rising in October 2025
The October 2025 oil rally results from several interconnected geopolitical and market dynamics:
▪️ New US sanctions on Russian oil
The latest US restrictions prevent Rosneft and Lukoil from accessing key export markets, significantly reducing the supply of Russian crude to global markets. The supply shock has raised market uncertainty and triggered speculative price increases.
▪️ Changing supply-demand balance
Earlier in 2025, the oil market experienced mild oversupply, which helped contain prices. However, the sanctions now threaten to eliminate that buffer. Meanwhile, demand remains strong in Asia, particularly in China and India, while Western countries continue their energy transition, creating regional disparities in fuel consumption patterns.
▪️ Geopolitical tension and volatility
The ongoing Russia–Ukraine war and the US–Russia standoff remain central to global energy insecurity. The newly imposed sanctions not only restrict Russian exports but also disrupt supply chains across Eurasia, fuelling volatility and pushing prices upwards.
Global and regional impact
US energy policy under President Trump has shifted towards supporting domestic fossil fuel production while tightening sanctions on Russian exports.
This dual strategy amplifies global imbalances: the US increases its own production capacity while limiting Russian output — a move that reshapes global trade flows and benefits American energy exporters.
In Europe, this policy further complicates the continent’s efforts to reduce dependence on Russian oil and gas. Although alternative supply routes (such as LNG terminals in Croatia and Greece) are expanding, they remain more expensive and limited in capacity.
The result is a period of elevated prices and prolonged uncertainty for energy-importing nations, including Hungary.
Read our latest: Washington turns up the heat, Hungary under fire for Russian energy reliance
Impact on the global economy
Higher oil prices translate directly into rising energy and transport costs worldwide, leading to inflationary pressure across multiple industries — from agriculture to manufacturing.
For developing economies and heavily import-dependent regions, this poses a serious economic challenge, potentially slowing growth in late 2025 and early 2026.
Investors are responding with heightened caution. The volatility of oil prices has drawn speculative activity into energy markets, as traders react quickly to political developments and supply disruptions.
Read also – Fuel supply disruption at Budapest Airport: could flights be affected?
Hungary’s energy dependency and outlook
Hungary remains one of the EU’s most oil- and gas-dependent countries.
In 2025, about 87% of its oil and natural gas imports still come from Russia.
The National Energy and Climate Plan sets an ambitious goal to reduce this dependency to 80% for gas and 85% for oil by 2030, primarily through:
- increasing domestic production and consumption efficiency,
- renewable expansion, and
- developing alternative import routes via the Croatian LNG terminal and cross-border interconnectors.
However, the Hungarian government continues to oppose a full EU ban on Russian energy imports, arguing that an immediate cut-off would threaten energy security and impose severe economic costs.
While Hungary follows a gradual diversification strategy, the government has often aligned with US energy initiatives, including support for American LNG and small modular nuclear reactor projects — reflecting the growing influence of the US energy lobby in the region.
First major sanctions under Trump’s new term
Trump’s sanctions against Rosneft and Lukoil mark his first major punitive action against Moscow since returning to power. He justified the move after meeting NATO Secretary-General Mark Rutte, claiming that Russia had “failed to commit to peace negotiations” despite previous talks.
“When I meet Putin, we have good conversations — but they lead nowhere,” Trump said, announcing the restrictions from the Oval Office.
The measures target companies handling nearly half of Russia’s oil exports, cutting deep into the Kremlin’s revenue streams — as oil and gas taxes account for roughly one-quarter of Russia’s federal budget.
What this means for Hungarian drivers
For Hungarian consumers, the immediate effect will be visible at the pump:
prices could rise by another 10–15 forints (€0.026–0.038) in the coming weeks if Brent remains above USD 65.
While Budapest emphasises its “realistic” energy policy, maintaining Russian imports for stability, the combination of global sanctions, market volatility, and exchange rate shifts makes further price increases likely through November.
Read here for more about Hungary’s fuel prices
Frequently asked questions about Hungary’s fuel price increase
Why are fuel prices rising in Hungary?
Fuel prices in Hungary are increasing mainly because global oil prices have surged following new US sanctions on Russia’s Rosneft and Lukoil, two of the country’s largest oil producers. The sanctions have disrupted global supply, pushing the Brent crude price up by around 5% in late October 2025.
How much will petrol and diesel cost from Tuesday?
From 29 October 2025, the wholesale price of petrol will increase by HUF 5 per litre (€0.013) and diesel by HUF 10 per litre (€0.026). Average retail prices are expected to reach around HUF 579–588 (€1.48–1.50) per litre, depending on the station and region.
How does the global oil market affect Hungarian prices?
Hungary imports most of its oil from abroad, so domestic fuel prices closely follow international trends. When the global price of Brent crude rises, Hungarian refineries and fuel suppliers adjust their prices accordingly.
How dependent is Hungary on Russian oil and gas?
As of 2025, 87% of Hungary’s oil and gas imports come from Russia. Although the government plans to reduce this dependency to around 80–85% by 2030, progress is gradual due to infrastructure and cost challenges.
What is Hungary doing to reduce its energy dependence?
Hungary’s National Energy and Climate Plan aims to diversify supplies through: expanding domestic production and renewable energy, importing LNG from Croatia, and developing cross-border interconnectors. However, full independence from Russian energy is not yet feasible, according to government officials.
Could fuel prices rise even further?
Yes. Analysts warn that if Brent crude remains above USD 65 per barrel, Hungarian petrol and diesel prices could increase by another 10–15 forints (€0.026–0.038) in the coming weeks.
What role does the US play in these price changes?
The United States significantly influences the global oil market. Under President Donald Trump, Washington has strengthened sanctions against Russia and increased its own domestic energy output — policies that can both disrupt global supply and drive up prices in Europe.
Will the Hungarian government take steps to control prices?
No official measures have been announced so far. However, in previous years, the government has occasionally intervened through temporary price caps or tax adjustments when fuel prices have risen too sharply.
If trump doesn’t grant any exceptions, get ready for a cold winter my fellow Hungarians. You wanted to support the war machine, then get ready for consequences. Oh, and if you still want cheap energy, go and join brics instead