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It is not oil, oil products, or the exchange rate that explains the rise in fuel prices in Hungary, but the doubling of domestic retail and wholesale margins, Erste Bank’s oil and gas analyst Tamás Pletser told Világgazdaság. The Hungarian government lifted the fuel price freeze in December, and since then Hungarian motorists have had to pay significantly more for fuel.
At the beginning of December, the capped price of fuel was 480 forints (EUR 1.2), but now the average price of 95-liter petrol is 658 forints (EUR 1.65) per liter, and diesel is around 720 forints (EUR 1.8), with prices varying widely from one petrol station to another. These figures are the highest in the region, and there have already been several complaints. According to an analyst interviewed by Világgazdaság, the reason for the extremely high prices is the margin.
Although the relevant figures are not public and it is not known how much of the increased profit margin will fall on wholesale and how much on retail, Tamás Pletser says that
we should now expect a margin of 120-140 forints (EUR 0.30-0.35), while previously it was 60-70 forints (EUR 0.15-0.17).
This increased margin has led to a difference of almost 50 forints (EUR 0.12) in fuel prices compared to Austria, and a difference of 90-100 forints (EUR 0.22-0.25) compared to Slovenia.
The increased margin is due to the fact that some of the 30 percent of retail petrol stations have closed or are suffering from a lack of capital, and companies are cautious about returning to wholesale after the abolition of fuel prices, the analyst pointed out. He said the market has become smaller, but the level of returns expected by the remaining players is higher.
Stations are now more bold in pricing fuel, and consumers are still forced to buy it.
The Erste analyst says that the domestic margin will decrease, but it will take time. Pletser does not rule out that this process could take 5-10 years.
In the meantime, petrol prices in Hungary will rise again from today. The price of 95-liter petrol will rise by six forints gross from today, which means that the average price will be 658 forints (EUR 1.65). This is the second increase this week, with the price of petrol rising by 10 forints gross on Wednesday. For diesel, the average price remains at 720 forints (EUR 1.8) per liter.
Featured photo via Mol Group