From Friday, the wholesale price of petrol and diesel will fall.Continue reading
Minister for National Economy Márton Nagy has summoned representatives of the Hungarian Petroleum Association, including MOL (Hungarian multinational oil and gas company), to his office, reports Magyar Nemzet. The extraordinary meeting was called in response to high fuel prices on the domestic market.
During the meeting, the parties reviewed international events and economic developments affecting the Hungarian fuel supply and fuel prices. The Minister noted that
fuel prices in Hungary are above the regional average, with a liter of petrol costing HUF 641 (EUR 1.64) and a liter of diesel HUF 653 (EUR 1.67) as of Friday.
Márton Nagy drew attention to an earlier agreement between the parties that fuel prices should be in the mid-range in the region. On this basis, he warned the industry against not respecting their commitments under the agreement. He stressed his expectation that fuel prices should be in the mid-range in the region as soon as possible, in line with the agreement.
Márton Nagy. Photo: MTI/Purger Tamás
To this end, Nagy 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 and thus serve as a reference point for compliance, monitoring, and control of the agreement.
Earlier this week, in response to a question about why there should be pressure on fuel prices and why the government does not let the market set them, the Minister emphasized that fuel prices do not only track Ural crude oil prices. “There is a profit element and many other elements. When we negotiate, we take these factors – including profit margins. We look at whether they are justified and how they are evolving in other neighboring countries.”
Fuel prices changed two times this week. First, they rose, however yesterday saw a reduction in both petrol and diesel prices, by HUF 3 and HUF 5 respectively. The current fuel price cut is somewhat unexpected, as in the past there have only been isolated or partial price cuts: either petrol or diesel. The last time both were cut at the same time was at the very end of February, a month and a half ago. The fact that the double reduction has now been reintroduced by traders may well have something to do with the government’s indication that it believes there is something wrong with Hungarian pricing, and that they shifted from the mid-range of the region.
Via Magyar Nemzet; Featured image: Facebook/MOL