The Hungarian government plans to phase out its fuel price protection scheme after retail fuel prices dropped below the regulated ceiling, Prime Minister Peter Magyar said following the latest cabinet meeting.
The government will submit amendments to Parliament to abolish the mechanism that capped retail prices of 95-octane petrol and diesel for vehicles registered in Hungary. The decision comes after a sustained decline in fuel prices across both wholesale and retail markets.
From 18 June, wholesale prices are set to fall further, with petrol decreasing by 1.4 eurocents per liter and diesel by 4 eurocents per liter, reinforcing the downward trend in transport fuel costs.
Although the price cap system will be withdrawn, the government confirmed that the temporary reduction in fuel excise duties will remain in force. In addition, oil company MOL is expected to continue applying reduced commercial margins, helping to keep retail prices stable.
Officials estimate that the fuel support scheme cost around €142 million per month, making it a significant fiscal intervention during its period of application.
According to government assessments, current market prices are now expected to remain 3–4 eurocents per liter below the former regulated ceiling, reducing the need for continued price controls.
The scheme was originally introduced on 10 March, setting maximum retail prices at €1.69 per liter for petrol and €1.75 per liter for diesel, in response to earlier energy price pressures.
The recent decline in fuel costs has been driven primarily by lower international oil prices, which have eased pressure on domestic retail fuel markets and enabled the gradual withdrawal of state intervention.
