Cabinet decision to end 95-octane retail price cap
Hungary’s government plans to phase out its fuel price protection scheme after retail fuel prices fell below the regulated ceiling, Prime Minister Peter Magyar said following the latest cabinet meeting. The move is tied to a sustained decline in fuel prices across both wholesale and retail markets. The government will submit amendments to Parliament to abolish the mechanism that capped retail prices of 95-octane petrol and diesel for vehicles registered in Hungary.
Wholesale outlook from 18 June and expected impact on retail
From 18 June, wholesale prices are set to fall further, with petrol decreasing by 1.4 eurocents per liter and diesel by 4 eurocents per liter. This is expected to reinforce the downward trend in transport fuel costs. Government assessments indicate that current market prices are now expected to remain 3–4 eurocents per liter below the former regulated ceiling.
Excise duty reduction and MOL margin policy to continue
While the price cap system will be withdrawn, the government confirmed that the temporary reduction in fuel excise duties will remain in force. In addition, oil company MOL is expected to continue applying reduced commercial margins, supporting stability in retail prices. Officials estimate that the fuel support scheme cost around €142 million per month during its period of application.
Original scheme parameters introduced on 10 March
The scheme was originally introduced on 10 March, setting maximum retail prices at €1.69 per liter for petrol and €1.75 per liter for diesel. The recent decline in fuel costs has been driven primarily by lower international oil prices. This easing has reduced pressure on domestic retail fuel markets and enabled the gradual withdrawal of state intervention.
