Unexpected: MOL lowers fuel prices in Hungary
As of early Monday afternoon, MOL, Hungary’s leading oil and gas company, reduced the price of fuel by HUF 10 at all its filling stations.
Effective early Monday afternoon, MOL has reduced the price of fuel (or, in the absence of wholesale price changes, its margin) by HUF 10 at all its filling stations, Népszava reports, citing market sources.
MOL changes its prices – more precisely, its margin
The news portal noted that this happened independently of wholesale price changes, meaning the company reduced its margins, i.e. its own profit. It was recalled that, although the sector does not admit that its tariffs and profits are above the regional average, the government has indicated that it might reintroduce a fuel price cap.
If the market-leading chain’s move is followed by all Hungarian petrol stations, Holtankoljak’s figures suggest an average price of HUF 637 (EUR 1.63) for petrol and HUF 623 (EUR 1.59) for diesel per litre.
László Gépész, Vice President of the Association of Independent Petrol Stations, which represents small petrol stations, confirmed the information about the price cut, citing his experience in the market.
Small petrol stations in danger
He also noted that, in his opinion, “the HUF 10 margin cut should be followed by all petrol stations that do not want to lose customers”. However, he added that it is not Mol that will go under, which last year made a net profit of HUF 568 billion (EUR 1.45 billion), but “those small, capital-poor stations whose average “profit” so far has been perhaps around HUF 5 per litre.”
With the current HUF 10 margin reduction, the operation of most small domestic petrol stations will therefore become unprofitable, the Vice President said.
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