Hungarian Government Moves to Regulate Fuel Prices: Official Announcement of Intervention and Tax Cuts

Hungarian Minister for National Economy, Márton Nagy, has announced that he will propose an intervention to the government regarding fuel price regulation. During an interview with Index, Nagy stated that he was confident that this measure would not result in supply issues and clarified that lower profit margins did not mean selling fuel at a loss.

At a press conference held at the Ministry of National Economy, Nagy provided further details about the proposed fuel price intervention. He confirmed his intention to propose the intervention and emphasized the importance of sticking to regional averages in the proposal. Petrol prices would deviate by 3% and diesel by 5% from the regional average, according to Nagy.

Nagy also highlighted the necessity of this adjustment, especially with the increase in oil prices due to conflicts in the Middle East. He emphasized that while retailers may feel overcharged, families would ultimately benefit from the government’s decision. The Minister discussed tax cuts as well, pointing out Hungary’s average tax rate in the region and addressing the discrepancy between local fuel prices and regional averages.

According to Nagy, reducing profit margins would not force retailers to sell fuel at a loss and stressed the importance of aligning regional prices and investigating any discrepancies that may arise, such as “molecule” prices. In conclusion, Nagy pledged to take corrective action if pricing differences were determined to be due to unfair factors and promised to hold accountable any party responsible for price disparities. The government’s decision regarding fuel price regulation is expected to be proposed and discussed at the upcoming cabinet meeting.