Government Acknowledges Drop in Motor Fuel Prices

Energy Trade

National Economy Minister Márton Nagy said motor fuel price reductions announced on Wednesday would bring prices at the pump down to the average for neighboring countries, according to a report by state news wire MTI.

Speaking to journalists after a cabinet meeting, Nagy said motor fuel companies had adjusted prices at the request of the government in recent weeks. He affirmed that the government had decided to use the average price of vehicle fuel prices in neighboring countries, rather than for the whole region, as a benchmark for comparison.

From Friday, local petrol prices will fall to around HUF 616/liter, down HUF 34 from the April peak, while diesel prices will drop to about HUF 607/liter, down HUF 54 from a high in February.

Two weeks earlier, Nagy had issued an ultimatum to local motor fuel companies: either bring prices at the pump down to the regional average or face government intervention. 

On Wednesday, Nagy said the government expected motor fuel companies to continue to keep prices level with the average in neighboring countries in the future, too. The cabinet will review the situation in two weeks again, he added.

He acknowledged the companies' cooperation and voluntary compliance with the government's request, adding that they could squeeze the reduction into their profit margins.

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