Hungary’s parliament has approved legislation to phase out the fuel price cap, meaning the system in place since March could soon come to an end. Although the decision has been made, one key detail remains unclear: the precise date on which the regulated price will be withdrawn.
Option remains for future fuel price caps
The amendment, adopted on Tuesday, was backed by 130 MPs, with 36 voting against and five abstaining. The proposal, tabled by Minister for the Economy and Energy István Kapitány, argues that improving conditions in the global energy market justify the removal of fuel price caps.
The price cap was introduced on 10 March 2026 following a sharp rise in oil prices triggered by conflict in the Middle East. Under the scheme, 95-octane petrol was capped at 595 forints per litre and diesel at 615 forints, but only for vehicles bearing Hungarian number plates and only when fuel was dispensed directly into the tank, excluding purchases in containers. The measure applied not only to private individuals but also to businesses, hauliers and agricultural operators.
However, the newly adopted law does not entirely rule out future state intervention. Citing the volatility of the fuel market, it allows the minister responsible for trade policy to reintroduce regulated prices by decree should market conditions shift significantly, if deemed necessary to protect consumers.
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Planned strike may be overtaken by events
The decision could also significantly reshape a planned protest by the Independent Petrol Stations Association. As recently as Monday, the organisation had called on small, independent forecourts to stage a one-day warning closure on 26 June.
According to the association, the price cap system, introduced under the Fidesz government and maintained by the subsequent Tisza administration, has inflicted losses of between 7.5 and 8 billion forints on small and medium-sized, family-owned filling stations since March. It also criticised the new government for failing to deliver a previously promised compensation scheme.
Another key grievance had been the government’s earlier position that the price cap could be reinstated at any time. While the new law does preserve this option in exceptional circumstances, parliament’s decision to abolish the current scheme effectively meets one of the protest’s central demands.
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