Erste: Margin Doubling Causing Fuel Price Increase

Automotive

It is not oil, nor oil products, nor the exchange rate that explains the increase in fuel prices in Hungary, but rather the doubling of the domestic retail and wholesale margin, Tamás Pletser, an oil and gas industry analyst at Erste Bank, told leading business daily Világgazdaság.

Pletser indicated that since the relevant data is not public, it is not known how much of the increased profit margin falls on wholesale and how much on retail, but while the margin used to be HUF 60-70, it has now jumped to HUF 120-140.

The latter, therefore, led to the fact that refueling at Hungarian stations is the most expensive in the region, the report notes.

According to holtankoljak.hu, the average retail price of 95-octane gasoline stands at HUF 655.9/liter at the moment, while a liter of diesel costs Hungarians about HUF 717.8.

Hungary’s government was forced to scrap its price cap on fuel on December 6 due to a lack of imports and panic buying that led to fuel shortages across the country. The price cap limited the per liter price of both 95-octane gasoline and diesel to HUF 480.

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