The price of Brent oil has been falling steadily.Continue reading
After a slight pause, the fall in fuel prices in Hungary is continuing, according to a recent statement from Holankoljak.hu. This is good news, as it was announced on Friday that the long-standing price drop in fuel prices had come to a halt.
As Világgazdaság writes, another round of price cuts at Hungarian petrol stations will come into effect from Wednesday. The wholesale price of petrol will be reduced by HUF 7 gross and that of diesel by HUF 6 gross per liter. Taking all the above into account, the average prices at the retail level, i.e. at the pump, from mid-week are as follows:
Today, 95 petrol costs an average of HUF 587 (EUR 1.54) per liter and diesel HUF 606 (EUR 1.59) per liter. This will be followed by the new lower price from Wednesday.
This is not a break in the trend, and in fact there has been a sustained fall in prices at Hungarian wells since the end of September.
This comes as something of a surprise, given the outbreak of the Palestinian-Israeli war, which analysts had previously thought could drive up prices on the fuel market. However, so far, the forecast has been contradicted: in the past month and a half, the price of petrol and diesel has fallen by around 100 forints gross per liter for each.
Preliminary expectations suggest that Hungarian vehicle owners can be very happy with the current situation on the fuel market, as the price of Brent oil per barrel is on a steady downward trend. Holtankoljak.hu indicated that although there was no significant change in the price of oil from Monday to Sunday last week, from Thursday there was a drop of almost five percent compared to the beginning of the week.
Specifically, the price per barrel seems to be hovering around USD 80. For example, last Friday there were quotes of USD 76-77. Yesterday, on Monday, the price level was around USD 81, showing a decline on a weekly basis: last Monday the price was above USD 82.
In the coming months, we can expect prices between USD 80-85 per barrel.
The other key factor in the fuel price trend in Hungary is the forint exchange rate. Here, too, one cannot wish for a better trend, as the Hungarian currency has been strengthening against the dollar, with 1.5 percent last week, for example. The exchange rate is now holding steadily below the HUF 350 threshold, with the dollar currently selling for HUF 347.
As a result, it is forecast that fuel prices could fall further next week, with the average price of petrol then dipping well below the HUF 600 (EUR 1.58) mark.
Via Világgazdaság, Featured image via Pexels
