NewsHungary warns retailers to cut fuel prices or face "strict measures"

Hungary warns retailers to cut fuel prices or face "strict measures"

Hungarian Prime Minister Viktor Orban

Images source: © Getty Images | NurPhoto

25 April 2024 12:03

The Hungarian government has issued a two-week notice to retailers, urging them to align fuel prices with the regional average voluntarily. Failure to comply will lead to "strict measures," announced Marton Nagy, the Hungarian Minister of Economic Development, during a press conference on Wednesday.

Nagy had previously indicated on Tuesday his recommendation for government intervention regarding the escalating fuel prices in Hungary, a trend that has persisted for several months.

"In two weeks, the government will assess price adjustments and will intervene with strict measures if retail fuel sellers have not adjusted to the regional average prices," stated Marton Nagy after a government meeting on Wednesday.

Recent data published by the Hungarian Central Statistical Office (KSH) highlights that Hungary's average petrol price is 3.2 per cent higher than the Central European region's average. This region includes countries such as Poland, the Czech Republic, Slovakia, Austria, Romania, Bulgaria, Serbia, Croatia, Slovenia, and Hungary. Similarly, the average diesel price in Hungary exceeds the regional average by 5 per cent.

Starting Friday, petrol prices are set to decrease to 647 forints (£1.56), and diesel to 633 forints (£1.52). "Although a positive shift has been noted, the forthcoming fuel prices, despite the reduction, will still surpass the regional average, with diesel and petrol being 10 forints (2p) and 27 forints (6p) more expensive, respectively," Nagy commented after the meeting.

Will price limits return?

Nagy did not elaborate on the specific measures that might be adopted after the two-week period. Hungary has previously experienced state-based fuel regulations, including price caps that were removed in December 2022. This regulatory change came after more than a year of implementation, which had led to widespread panic, fuel shortages, and long queues at petrol stations.