Prime Minister Viktor Orbán announced on Monday afternoon that the government will introduce a protected price for gasoline and diesel due to the oil situation in the Middle East.
In a live broadcast on Facebook, Orbán said that the government meeting decided to protect Hungarians, private individuals, farmers, and entrepreneurs from high fuel prices. According to the prime minister, the government will introduce a protected price for both gasoline and diesel, above which consumer prices at gas stations and filling stations cannot exceed.
“This means 595 forints for gasoline and 615 forints for diesel,” the prime minister explained, adding that in order to maintain these prices, state reserves will be opened. “The protected price is only for vehicles with Hungarian license plates and Hungarian registration permits, and is valid for private individuals, farmers, transporters and entrepreneurs alike. The measure will come into effect on Monday, i.e., at midnight today,” Orbán said.
Due to the ongoing war in Iran and the closure of the Strait of Hormuz, the price for Brent oil per barrel rose to as much as $120 by Monday morning. However, since then, it has plummeted to below $90. It is currently at $86. Meanwhile, the forint is also rapidly weakening against the dollar.
This will result in the wholesale price of gasoline increasing by 10 forints gross and that of diesel by 20 forints gross from Tuesday.
Citing data from Holtankoljak.hu, Hirado writes that 95 octane gasoline can currently be refueled at the pump at an average price of 585 forints per liter, while diesel fuel costs 629 forints per liter, so the 10 and 20 forint price increases from Tuesday may be added to this.
According to Index, MOL had previously sent a letter to its partners indicating that the oil and gas company is introducing “extraordinary pricing” at its gas stations, to come into effect immediately, according to which gasoline will cost 619 forints per liter and diesel 639 forints.
The letter also called on the operators of gas stations to check the fuel prices displayed for customers and to update them accordingly.
Minister of National Economy Márton Nagy shared further details about the government’s intervention on Monday evening, writing in a Facebook post that “in order to reduce burdens and increase security of supply,” the excise duty on fuels will be reduced to the EU minimum level.
This means a tax reduction of 19.25 forints per liter for gasoline (from 158.8 forints/liter to 139.55 forints/liter), and 20.48 forints per liter for diesel (from 148.76 forints/liter to 128.28 forints/liter). In addition, the export of crude oil, 95-octane gasoline and diesel will be prohibited.
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