Published: December 07 2023
In Hungary, there will be a significant increase in fuel prices starting from January due to changes in excise taxes. This increase is expected to be well above the regional average.
The reason behind the fuel price hike
The increase in fuel prices is mainly attributed to the rise in excise duty. Zsolt Hernádi, CEO of MOI, has stated that there will be an expected rise of HUF 41 per litre from January. This increase may lead to more car owners in Hungary deciding to get rid of their cars, adding to the existing trend.
Infringement proceedings due to low excise duty levels
Hungary has been at risk of infringement proceedings for setting excise duty levels below the EU minimum for several years. The weakening of the Hungarian forint has caused the country's excise duty to fall below the EU minimum. Currently, the excise duty in Hungary is HUF 120 per litre of petrol and HUF 110.35 per litre of diesel, which converts to EUR 0.314 for petrol and EUR 0.289 for diesel. This situation was bound to be addressed sooner or later.
The expected fuel prices from January
Preliminary calculations show that starting from January, the cost of petrol in Hungary will be around HUF 618 (EUR 1.62) per litre, while diesel will cost around HUF 634 (EUR 1.66) per litre.
Conclusion
The upcoming fuel price hike in Hungary is expected to have significant implications for car owners in the country. As the prices rise, it will be interesting to see how the trend of people getting rid of their cars will develop in response to these changes.
Questions & Answers
Why will fuel prices in Hungary rise from January? Fuel prices in Hungary will rise from January due to an increase in excise duty, which is related to the latest excise tax changes.
By how much will fuel prices in Hungary increase from January? Fuel prices in Hungary are expected to rise by HUF 41 per litre from January.
How does the current excise duty in Hungary compare to the EU minimum? The current excise duty in Hungary is below the EU minimum. At present, excise duty in Hungary is HUF 120 per litre of petrol and HUF 110.35 per litre of diesel, which is lower than the EU minimum.
What are the estimated prices for petrol and diesel from January in Hungary? It is estimated that petrol will cost HUF 618 forints (EUR 1.62) per litre, while diesel will cost HUF 634 (EUR 1.66) per litre from January.
