Fuel prices at record heights

Analysis

Wednesday's price hike brought gasoline prices in Hungary to an all-time high, according to a report by Index.hu.

Fuel prices rose again today: gasoline became HUF 5 more expensive, while the cost of one liter of diesel became HUF 2 higher. In the past month alone, the price of gasoline rose by HUF 24, while that of diesel increased by HUF 16.

The latest price hike means that the average price of one liter of gasoline (95 octane) stands at HUF 451. A liter of diesel now costs HUF 447.

This means that the price of petrol has virtually reached its historic high, since the last time a liter of gasoline cost this much was in April 2012, while diesel is only a hair below the record level. While oil prices were higher in 2012, hovering around USD 100 per barrel compared to around USD 75 today, the Hungarian forint weakened significantly over the past nine years (One USD was worth about HUF 230 in 2012 compared to more than HUF 300 today).

Moreover, the pandemic caused by the coronavirus has made current prices even more exorbitant than last year. Barring a "miracle" in the oil market or a strengthening of the forint, further price rises are likely, the report notes.

 

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