Hungary plans to end its fuel price protection scheme after retail prices fell below the regulated ceiling, Prime Minister Peter Magyar said following the latest cabinet meeting. The government will submit amendments to Parliament to remove the mechanism that capped retail prices for 95-octane petrol and diesel for vehicles registered in Hungary. The decision follows a sustained decline in fuel prices across both wholesale and retail markets.
Parliament amendments and timeline for withdrawal
Prime Minister Magyar said the phase-out is linked to retail prices dropping under the regulated ceiling. The government’s planned amendments would abolish the price-capping mechanism for capped products. Officials also indicated that state intervention is being withdrawn gradually as market pricing moves lower.
Wholesale price outlook from 18 June
From 18 June, wholesale prices are expected to fall further. Petrol is projected to decrease by 1.4 eurocents per liter, while diesel is set to drop by 4 eurocents per liter. The government said this would reinforce the downward trend in transport fuel costs.
Excise duty reduction and MOL margin policy
While the price cap system will be withdrawn, Hungary confirmed that the temporary reduction in fuel excise duties will remain in force.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. Officials said these measures are intended to help keep retail prices stable during the transition away from controls.
Cost estimates and former ceiling levels
Officials estimate the fuel support scheme cost around €142 million per month. Government assessments indicate current market prices are expected to stay 3–4 eurocents per liter below the former regulated ceiling, which they said reduces the need for continued price controls. The scheme began on 10 March, setting maximum retail prices at €1.69 per liter for petrol and €1.75 per liter for diesel.
Drivers of lower fuel costs
The government attributed the recent decline in fuel costs primarily to lower international oil prices. It said this eased pressure on domestic retail fuel markets. That development enabled the gradual withdrawal of state intervention, alongside the move toward ending the retail price cap mechanism.
