Fuel Prices Start to Fall after Government Considers Intervention

The government is calling on fuel retailers to voluntarily adjust their prices to the regional average so that Hungarian fuel prices do not fall behind it, the Minister for National Economy announced on Wednesday.

Márton Nagy, arriving from a government meeting, said that the prices of 95 petrol and diesel in particular should return to the regional average. A positive shift has already taken place, but the fuel prices expected from Friday are still higher than the regional average, with a difference of HUF 10 (EUR 0.25 / 1 EUR=393.46 HUF) for diesel and HUF 27 for petrol, he stressed. The government has given fuel retailers two weeks to react.

After this, the government will look at price developments again and will intervene with tough measures if retailers do not return to the regional average by then,

Minister Nagy said.

Márton Nagy recalled that the government and the Hungarian Petroleum Association had signed an agreement to ensure that domestic fuel prices would not be higher than the average price in the region. He summoned representatives of the Hungarian Petroleum Association, including MOL (Hungarian multinational oil and gas company), to his office almost two weeks ago. During the meeting, he informed the parties that the Central Statistical Office will soon set up a public system for monitoring regional fuel prices, which will regularly present price differences. The first such publication was made last Friday, and it is already clear that industry players, including MOL, have adapted to this, the Minister said. He added that the company had reduced fuel prices in several steps this week,

with the price of diesel dropping to HUF 633 and petrol to HUF 647 from Friday.

However, the government has found that this positive shift is not enough, he stressed. “The government is again urging all fuel retailers to reach the regional prices as soon as possible to protect families,” the Minister said.

Nagy’s statements seem to have had an effect: with the Friday cut, petrol stations will have to pay HUF 3 less for petrol and HUF 6 less for diesel. It is questionable how this will be reflected in the prices at gas stations, although according to current practice, retail prices can be expected to fall by at least the same amount, Világgazdaság writes. The current average prices are HUF 650 and HUF 639 per liter accordingly, following the announcement on Monday that the wholesale price of diesel will be reduced by HUF 8 from Wednesday. On Wednesday, however, MOL cut the price of diesel at petrol stations by even more, HUF 10 per liter.

Via MTI, Világgazdaság; Featured image: Facebook/PKN Orlen