Insane: Fuel in Hungary could be the most expensive in the region soon

Fuel prices have risen sharply over the past week and market forecasts suggest that oil prices will continue to trend upwards in the upcoming months. Meanwhile, in addition to VAT and excise duties, the Hungarian government is imposing a series of “hidden” taxes on petrol station operators. These operators are paying extra taxes on a scale not seen elsewhere in the EU. From next January, excise duty rates will increase significantly. This means that we will have the highest fuel prices of all the neighbouring countries. The government’s actions may backfire as over-taxation will probably reduce budget revenues.

As 24.hu reported, since the low point seen in mid-May, fuel prices at domestic petrol stations have risen spectacularly, especially in the past two weeks, when petrol prices have increased by an average of HUF 42 (EUR 0.11) and diesel by HUF 51 (EUR 0.13). The average price of diesel has risen to HUF 628 (EUR 1.62) since Friday, outstripping the price of petrol, which has risen to HUF 627. This sudden price rise is unique in that drivers have never before seen diesel prices rise by HUF 30 (EUR 0.08) in less than a week.

Despite that, according to the latest data from Eurostat, Hungary has the third lowest tax rate on fuel in the EU, despite record high VAT. The state collects 42 percent of the money from the sale of regular petrol. 41 percent of the money from diesel is in the form of excise duties and other indirect taxes. These are above 50 percent in most member states of the EU.

Higher excise tax on fuel