Hungary's protected fuel price scheme strains market and finances

Hungary's protected fuel price (védett áru) set by the government is costing taxpayers up to 50 billion forints, according to the Hungarian Petroleum Association’s secretary Grád Ottó. The measure forced a double‑run of strategic fuel reserves, which now have to be replenished at much higher prices, creating a substantial additional burden for the state.

Independent gas‑station owners, led by Gépész László of the Independent Gas‑Station Union, say the scheme has caused losses of 8‑9 billion forints for small stations between March and June and could see consumer fuel prices fall only after a two‑to‑three‑week lag when international oil prices drop. Negotiations are under way on possible compensation for the stations, while the overall market remains uncertain amid the Iran‑U.S. deal and a strong forint.