Hungary has adopted new legislation that ends government-imposed price caps on petrol and diesel, which had been in place since March. The change shifts policy away from direct fuel price intervention under the conditions cited by policymakers. Economy and Energy Minister István Kapitány said the government considers the crisis phase to be over.
Kapitány said fuel prices should again be set primarily by market dynamics. The previous ceilings of €1.69 per liter for petrol and €1.75 per liter for diesel have been formally removed. The deregulation therefore applies to the capped retail pricing levels that were previously enforced.
Emergency mechanism to reintroduce price controls
Even with the end of the caps, Hungary has kept a safety mechanism in place. Authorities retain the right to reintroduce price controls if severe market disruptions occur. Under the new framework, the minister responsible for trade policy can activate temporary caps through a decree in extraordinary circumstances.
The arrangement is designed to ensure intervention tools remain available if volatility returns. The decision preserves the ability to respond through temporary measures rather than maintaining ongoing regulated pricing. This framework keeps emergency powers aligned with conditions tied to market disruption.
Excise tax and MOL margin measures remain
Some supporting measures continue unchanged after the regulatory shift. A reduced excise tax regime on fuels will remain in effect. Energy company MOL is expected to maintain lower commercial margins that were introduced during the period when pricing was regulated.
The policy package therefore combines deregulation of retail price ceilings with continued fiscal support and margin-related expectations for MOL. The government’s approach maintains instruments intended to address potential future instability in fuel markets.
