Hungary's Prime Minister Péter Magyar has announced a new plan to provide targeted financial assistance to motorists facing rising fuel prices, specifically aiming to help owners of diesel vehicles and the agricultural sector. This decision comes as global oil prices climb, pushing Hungarian fuel costs higher, with diesel reaching its highest level in nearly four years at HUF 697 per litre (approximately $1.92). The government is explicitly rejecting a return to the universal fuel price cap system, which was previously implemented by Viktor Orbán's government, because it led to fuel shortages and cost the state budget tens of billions of forints monthly.
Magyar indicated that a decision on the specifics of this targeted support could be made as early as Wednesday. He emphasized that the previous price cap model, which fixed petrol at HUF 595 per litre ($1.64) and diesel at HUF 615 per litre ($1.69), created significant financial burdens for the state and disrupted supply. The government seeks a solution that avoids these issues, focusing on aiding those most affected by the price hikes without creating market distortions.
Concerns are also growing for smaller, independent petrol stations, which were heavily impacted by the previous price caps. The Association of Independent Petrol Stations (FBSZ) has warned that 600–700 family-owned businesses are at risk of insolvency due to insufficient margins. While the government aims to protect motorists, it also needs to avoid measures that could further jeopardize these businesses or lead to new shortages. Experts suggest that adjusting the tax burden on fuel could be an alternative to direct price intervention, though Hungary will still feel the impact of global oil price fluctuations.
Prime Minister Magyar also recently stated that his government has reduced the state budget deficit by approximately HUF 1,000 billion in three months. He has summoned the CEO of MOL Group, Zsolt Hernádi, and other executives to discuss strategies for curbing price increases, acknowledging that Russia's shift to importing diesel and tensions in the Strait of Hormuz are contributing to global crude oil prices exceeding $100.
