Fuel Prices in Budapest, Hungary Set to Increase in January

Published: December 08 2023

New changes to the excise duty in Hungary will result in an increase in fuel prices starting from January 1. The National Tax and Customs Administration has published the updated tax rates on its official website.

From January 1, petrol prices at petrol stations in Hungary will see a HUF 41.3 (EUR 0.10) increase due to the rise in excise duty. The exact tax rates will depend on the price of Brent crude oil. If the price falls below USD 50 per barrel, the excise tax on petrol will be HUF 157.55, while for diesel it will be HUF 152.9. If the price is above USD 50 per barrel, the tax will be HUF 152.55 for petrol and HUF 149.9 for diesel.

There were previous reports suggesting that fuel prices in Hungary could reach over HUF 700 (EUR 1.83) from January. This increase in excise duty was expected, as noted by Zsolt Hernádi, the CEO of MOL, a Hungarian oil and gas company.

The current low excise duty rates in Hungary would have eventually led to legal issues with the European Union. Additionally, if fuel prices remained significantly lower in Hungary compared to neighboring countries, it could revive fuel tourism, where people cross borders to take advantage of cheaper prices.

Zsolt Hernádi also mentioned that the ongoing conflicts, such as the war between Israel and Hamas, have influenced the price of Brent oil. The market is keeping a close eye on developments in Saudi Arabia and Iran, as any disruptions to oil production could lead to significant price increases.

Why are fuel prices in Budapest, Hungary set to increase in January? Fuel prices in Budapest, Hungary are set to increase in January due to an increase in excise duty imposed by the government.

How much will petrol prices increase by in Budapest, Hungary starting from January 1st? From January 1st, there will be a HUF 41.3 (EUR 0.10) price increase in the cost of petrol at Hungarian petrol stations.

Will diesel prices also increase in Budapest, Hungary starting from January 1st? Yes, diesel prices will also increase starting from January 1st. The excise tax on diesel will be HUF 149.9 if the price of Brent crude oil is above USD 50 per barrel.

What will be the excise tax on petrol and diesel if the price of Brent crude oil becomes cheaper than USD 50 per barrel in Budapest, Hungary? If the price of Brent crude oil becomes cheaper than USD 50 per barrel in Budapest, Hungary, the excise tax on petrol will be HUF 157.55, while the tax on diesel will be HUF 152.9.

Who announced the increase in fuel prices in Budapest, Hungary? The increase in fuel prices in Budapest, Hungary was announced by the National Tax and Customs Administration.

What was the previous price of petrol in Budapest, Hungary before the increase in January? Before the increase, a liter of petrol cost HUF 120 in excise duty in Budapest, Hungary.

Is there a possibility of legal proceedings by the EU if fuel prices in Hungary remain very low? Yes, if domestic fuel prices in Hungary remain very low, there is a possibility of legal proceedings by the EU.

What was the reason given for the expected rise in fuel prices in Budapest, Hungary? Zsolt Hernádi, MOL's CEO, noted that the expected increase in excise duty was the reason for the expected rise in fuel prices in Budapest, Hungary.

What factors can affect the price of Brent oil and potentially impact fuel prices in Hungary? Factors such as conflicts in the Middle East, particularly between Israel and Hamas, can impact the price of Brent oil, which in turn can potentially impact fuel prices in Hungary.

What does a drop in oil production by one percent mean for fuel prices? A drop in oil production by one percent can result in a 10 percent increase in fuel prices.