Hungary’s govt. contemplates enforcing lower fuel prices

Hungary’s government, led by Economy Minister Marton Nagy, is contemplating enforcing lower fuel prices following a review by the Central Statistics Office (KSH) of regional price levels, as per a Reuters report.

Nagy recently urged fuel suppliers to align petrol station prices closer to the central European average amid significant inflationary pressures within the European Union (EU).

Expressing dwindling patience, Nagy emphasised that local fuel prices currently surpass the regional average by 7 to 9 per cent. In response, he summoned representatives from Hungary’s Petrol Association and oil and gas group MOL to discuss the matter, prompted by petrol prices reaching 642 forints ($1.75) per liter, exceeding the regional norm.

Furthermore, Nagy highlighted that the KSH will soon release data on fuel prices and averages in neighboring countries, enabling the government to consider potential market intervention. This move follows Hungary’s decision to eliminate its fuel price cap in December 2022 due to import shortages and panic buying, with a pledge to intervene should fuel prices escalate above the regional average.