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Hungarian Government Ending Fuel Price Cap as Prices Decline, PM Magyar Says

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Hungary will phase out its fuel price cap after fuel prices are expected to fall 10 forints ($0.03) to 15 forints below the capped level this week, Prime Minister Peter Magyar said Wednesday in a post on X.

"Since fuel prices are expected to fall 10-15 forints below the price cap this week, the cabinet decided at today's meeting to phase out the price cap," Magyar said in the post.

Magyar said the cabinet approved the decision at a meeting, as the fuel market conditions are expected to improve.

The TISZA government will maintain lower excise duties, while Hungarian oil and gas company MOL Group will continue applying reduced fuel margins, Magyar said.

The Prime Minister added the fuel price cap program cost taxpayers 50 billion forints each month, highlighting the financial burden associated with maintaining the measure.

Magyar did not indicate a timeline for when the fuel price cap will formally expire.

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