Gloomy outlook: Weakening forint, rising fuel prices in Hungary

This morning, fuel prices changed again, with petrol becoming HUF 2 more expensive, while diesel increased by a more significant HUF 8. Unusually, there will also be an increase on Tuesday, with petrol rising by HUF 3 and diesel by HUF 7. The increase in fuel prices is not surprising: in addition to the weakening of the forint, domestic prices are now reflecting the earlier European price rises.

Increase in fuel prices

We have seen a steady upward trend in fuel prices over the last period. At the beginning of the week, on Monday and Tuesday, according to holtankoljak.hu, the price of petrol and diesel will continue to rise.

Earlier, according to information obtained by Index, the MOL Group sent a letter to petrol stations saying that in the future, the price of fuel may change several times a week instead of twice a week.

Tamás Pletser, oil and gas analyst at Erste Bank, told Index that the market saw a significant drop in diesel prices around April, as many in the European market feared an economic downturn. However, in the last two weeks, diesel margins in Europe have recovered and are now close to USD 22 in the European market, while the gasoline margin is around USD 17.

Weaker forint, more expensive diesel

Ottó Grád, Secretary General of the Hungarian Petroleum Association, stressed that there has been a significant turnaround in the European market in the past two weeks, as diesel prices have increased by 7%. This is also clearly visible in domestic diesel prices, in addition to the impact of the weak forint.

The Hungarian currency weakened significantly last week, from 390 to close to 399 against the euro and from 362 to 374 against the dollar.

According to Grád, the summer season traditionally sees an increase in petrol sales and he believes that repricing has come to an end. Thus, beyond one or two corrections, no more drastic increases can be expected in the near future.

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