September brings extremely expensive diesel prices to Hungary

According to the general secretary of the Hungarian Petroleum Association, the consumer price of fuel may remain in the range of HUF 650-670 (EUR 1.71-1.77) this year. However, there will be a major price hike from January.

What are the reasons for the price increase?

On average, fuel prices rose by HUF 70-80 (EUR 0.18-0.21) per liter per week in the past 6 weeks in Hungary. This is due to the combined effect of several reasons. The value of the forint fell by 7-8 percent compared to the dollar, and after the decisions of Saudi Arabia and Russia to reduce production, the world market price of crude oil rose from the previous range of USD 70-75 to around USD 85.

According to Ottó Grád, Secretary General of the Hungarian Petroleum Association, the spectacular increase in the price of diesel follows consumption and is typically a seasonal phenomenon. In summer, this type of fuel is usually the most expensive due to the fact that families typically travel with gasoline cars. Towards the end of the season, diesel consumption rises due to agricultural work, and the price typically follows.

Diesel prices will increase in September

On Friday, 1 September, the wholesale price of diesel will rise even further. Here are the average prices valid from the first of September: diesel: HUF 655/litre (EUR 1.73); 95 gasoline: HUF 642/litre (EUR 1.69). “Diesel prices may be permanently higher than gasoline prices in the coming weeks, but other than that, I expect a calmer period without significant price increases,” said Ottó Grád. According to him, the consumer price of fuel can remain in the range between HUF 650-670 (EUR 1.71-1.77), because he now sees stability in both crude oil and the HUF exchange rate.

HUF 41 (EUR 0.11) tax increase from January

As a result of the Hungarian government’s decision, the excise tax on fuels will increase by HUF 41 (EUR 0.11) gross from 1 January, which may raise the price of a litre for private individuals above the unprecedented limit of HUF 700 (EUR 1.85). According to Ottó Grád, most distributors will incorporate the HUF 41 (EUR 0.11) tax increase into the price of fuel one by one, and he thinks it is conceivable that some discount chains will start major, market-shattering campaigns.

Read also:

• Forint jumps to a peak after major decision of central bank
• Bus travel in Hungary to be unimaginably expensive next year

Source: infostart.hu, forbes.hu