Fuel prices to be raised in Hungary ahead of excise tax hike
The wholesale gross list price of petrol will be raised by HUF 8 per litre, while the price of diesel will go up by HUF 6 per litre as of 29 December. It is uncertain how this will manifest in retail prices, but the site expects the following average prices at the pumps on the last Friday of the week:
- 95-octane petrol: HUF 570/litre
- Diesel: HUF 593/litre
Compared to their mid-May lows, the price of petrol will be 2.7% or HUF 15 per litre higher and the price of diesel will be up 9.4% or HUF 51.
However, compared to their respective peaks on 20 September, we see a 13.9% drop (HUF 100) in the price of petrol and a 13.6% (HUF 93) reduction in the price of diesel.
At the beginning of January there will be a sharp break in the basically downward trend in domestic fuel prices: the forint has weakened so much against the euro in recent years that the excise tax rate on domestic fuels has fallen below the EU minimum level, so it was necessary to increase the tax to avoid infringement proceedings.
The new tax level, which the government is playing overly safe with, will come into effect from 1 January, when
THE PRICE OF PETROL AND DIESEL WILL INCREASE BY HUF 41.3 PER LITRE, INCLUDING VAT.
Here are Hungarian fuel prices as of 20 December in regional comparison. Note that these are average prices taken from European databases, with the HUF values calculated at an EUR/HUF exchange rate of 382.2. If you add the impact of the excise tax hike, you'll find that Hungary's fuel prices would be the highest in the region.
Cover photo: Getty Images
