Foreign news.
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Domestic fuel prices are starting to fall, according to a recent data release by Holtankoljak.hu. According to the fuel price monitoring blog, the wholesale price of petrol and diesel will be lower from Wednesday, which is expected to be reflected in prices at the pumps. The price of petrol will fall by HUF 3 gross, while the purchase price of diesel will drop by HUF 10 gross, writes Magyar Nemzet.
This price advantage can be passed on to vehicle owners, so that from mid-week, the average price of 95 petrol will be HUF 615 (1 EUR = 389 HUF) and the price of diesel will be HUF 647 per liter.
It is important to stress that these are average prices, actual retail prices are typically HUF 4-5 lower. On motorways, however, fuel is about HUF 50 more expensive per liter.
In any case, the current price cut means that so far this year, at the wholesale level, petrol has risen by HUF 71 per liter and diesel by HUF 73. Of this, HUF 41 is due to the mandatory excise duty increase implemented in January. Apart from that, there was an increase of HUF 33 and HUF 42 for petrol and diesel respectively. The increase of around HUF 70 per liter means that an average fifty-liter tank of petrol costs HUF 3,500-4,000 more now than it did last year in December.
The last time there was a drop in fuel prices was on January 10.
It was also recently revealed that the Hungarian Petroleum Association is working on the development of a fuel price information system, expected to provide price information from the end of February.
The association recently announced that more than half of the 2,000 or so domestic petrol stations are operated by member companies of the association. Seventy-five per cent of petrol and almost seventy percent of diesel products are sold at the retail level through these stations. The organization pointed out that there are increasingly frequent and often contradictory reports on the development of retail fuel prices in Hungary and their position in comparison with regional markets.
Determining an average retail price for the market is a very complex task, as pricing is an owner’s decision and can change on a daily basis, the association stressed. Correct information, the most accurate data available, is essential in demonstrating and confirming that the association is committed to maintaining a domestic fuel price level that ensures a mid-range position in the region, despite the extremely hectic and unpredictable global oil market in international comparisons.
Fuel turnover in Hungary, 2019-2023. Graph via MTI
Hungary Today reported that Minister of National Economy Márton Nagy held talks with representatives of the Hungarian Petroleum Association, including MOL, earlier this month. The parties had previously agreed to hold regular meetings to review domestic and international events and economic developments affecting fuel supply and prices. Nagy stressed at the meeting that the government remains committed to security of supply and the establishment of appropriate fuel prices. He therefore called on fuel distributors to honor their previous commitment to ensure competitive fuel prices at the regional level.
Sources:Hungary Day/Goggle.
