Hungarian Economy Minister Proposes Fuel Price Regulation Measures to Address Market Dynamics and Regional Discrepancies

In a recent interview with Index, Hungarian Minister for National Economy Márton Nagy announced his plans to propose an intervention to the government regarding fuel price regulation. He emphasized that this measure would not result in supply issues and explained that lowering profit margins does not necessarily mean selling fuel at a loss. Additionally, he expressed concerns about price trends not aligning with previous agreements.

During a press conference at the Ministry of National Economy, Minister Nagy discussed his proposal for fuel price intervention at the upcoming cabinet meeting. He confirmed his intention to propose intervention, with specific details still being developed. Emphasizing the importance of adhering to regional averages, he addressed concerns about potential supply disruptions by stating that petrol prices would deviate by 3% and diesel by 5% from the regional average. He also announced that while petrol prices would stay the same, diesel prices would see an HUF 8 reduction.

Minister Nagy pointed out the timely nature of this adjustment, particularly in light of increasing oil prices due to conflicts in the Middle East. He highlighted the benefits of the government’s decision for families, despite retailers feeling overcharged. Additionally, he discussed tax cuts, emphasizing Hungary’s average tax rate in the region and critiquing the disparity between local fuel prices and regional averages. He made it clear that reducing profit margins would not force retailers to sell fuel at a loss.

The Minister stressed the importance of aligning regional prices and investigating any discrepancies. He mentioned taking corrective action if pricing differences were due to factors like “molecule” prices and pledged to hold accountable any party responsible for price disparities. Finally, he shared average fuel prices on April 24, 2024, with petrol priced at HUF 648 (EUR 1.64) and diesel at HUF 640 (EUR 1.62) according to holtankoljak.hu.

In summary, Hungarian Minister for National Economy Márton Nagy has proposed an intervention to regulate fuel prices in light of rising oil costs and concerns about pricing disparities within Hungary’s regions. The measure will involve adjusting profit margins while maintaining supply levels and adhering to regional averages