Hungarians saw fuel prices hit an all-time high as the price of Brent crude rose and the Hungarian currency depreciated against the US dollar.
Brent crude is already 50% more expensive than at the beginning of the year and is currently 501 forints per liter, just under €1.40. Prices are expected to increase further on Friday.
At the end of last year, the price of Brent crude oil was around $50 (€43) per barrel, now it stands at $83 (€72) per barrel. Additionally, the forint has weakened against the dollar – $1, which was less than 300 forints at the beginning of the year, is now worth 312 forints.
“Unfortunately we see commodity prices stabilizing at a high level, we think the same for oil, and if this continues and the oil price continues to rise moderately and the Hungarian currency weakens against the dollar, that’s telling us,” economist Viktor Nagy told Euronews. pointing out.” “To a moderately rising fuel price overall for the coming period,” he said.
Eszter Bujdos, managing director of Holtankoljak, Hungary’s largest fuel distributor, believes the downward trend is minimal, adding that almost 50% of the fuel price in Hungary is made up of taxes.
The excise duty is currently 110.35 forints per liter for diesel and 120 forints for gasoline. The Hungarian government was interrupted in April as the law required a lower rate of over $50 (€43) per barrel for fuel.
“Operators are forced to raise prices as maintenance costs increase. Mostly due to the increase in overheads, electricity and gas prices. It goes without saying that the special tax that was introduced last year, which affected the trade sector, also reflected on the fuel wells.”
According to Eszter Bujdos, this extra tax can be up to 15 forins per liter of fuel.
The increase in the cost of fuel across Europe follows a strong post-Covid recovery.
Brussels has urged member states to spend all COVID-19 recovery funds that Budapest can get on clean energy.