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Fuel prices can reach HUF 400 if North African conflicts go on, analysts say

If oil prices keep on increasing due to the turmoil in North Africa and the Middle East, and the Hungarian currency will further weaken against the US dollar, fuel prices can hit or even exceed HUF 400 per liter in Hungary, analysts told MTI.

Hungarian oil and gas company MOL has already announced that it would raise its fuel prices by HUF 4-5 per liter next week. However, analysts say that if MOL considered all factors when settling it wholesale price, a HUF 10 increase per liter would also be possible.

Miklós Hegedűs, managing director of energy research institute GKI Energiakutató told MTI that the HUF 400 price per liter is “very close”, petrol prices could reach that in one or two weeks. Hegedűs added though that when markets calm down, petrol prices will decrease just as fast as they went up before, and the price for a barrel of oil will go back under $100 and remain there. He explained that prices are fundamentally determined by the Libyan conflict and depend on how long the instability in the area will last.

Dániel Tarjány from the Hungarian branch of Crédit Agricole Corporate and Investment Bank said that global markets are in great uncertainty due to the ongoing conflicts in the Middle East. If the situation won’t improve, the price of oil can reach $120 a barrel or can go even higher, he said.

MOL raised its wholesale petrol prices by HUF 5 and HUF 2 per liter, respectively, at the beginning of the week, bringing the prices at the pump to about HUF 365 per liter for petrol and HUF 362 per liter for diesel.