Hungarian owners of diesel vehicles with a maximum of 150 horsepower will receive a total of HUF 20,000 in compensation by December, Prime Minister Péter Magyar said in a post on social media on Friday.
The prime minister stated that direct and effective support would be provided to the owners of nearly 1m diesel vehicles and their families.
He said that on average a family refuels once a month and due to increased global market prices, the difference between the former protected price and the current market price amounts to some HUF 5,000 per fill-up, and the government will reimburse this difference once a month.
The compensation will be paid in instalments automatically, the first one in October, by the Hungarian State Treasury to the bank account from which owners paid their annual vehicle tax to Hungary's National Tax and Customs Authority (NAV). Vehicle owners without bank accounts will get cash deliveries by post.
The fuel compensation will also apply to small-scale farmers and sole proprietors, provided the vehicle is registered in their name, the PM said.
Agricultural producers can ask for a refund for the full amount of the excise tax included in the price of diesel fuel until the end of this year. The government aims to ensure that the rise in global oil prices has the least possible impact on Hungarian agricultural production costs and, subsequently, on food prices, Péter Magyar added.
The PM said global market conditions have changed drastically in recent months due to events in the Strait of Hormuz and the continuous drone attacks on oil refineries in the Russia-Ukraine war. Not only has the global price of oil risen towards USD 100 per barrel, but a diesel shortage has also occurred in Europe due to reliance on Russian diesel imports.
The per liter cost of diesel is HUF 50 higher in Poland, HUF 100 more in Austria, and HUF 30 higher in Serbia than in Hungary. Diesel prices are also currently higher in Slovakia, Czechia, and Slovenia, with Croatia being the only country where diesel is cheaper, though this is expected to last only until Monday, Magyar said.
He said that reintroducing protected fuel prices was not an option now as there would be no wholesaler importing diesel into Hungary, and a supply shortage would develop at Hungarian petrol stations within a few days. Also, at the current prices, the introduction of a regulated price would cost the Hungarian budget around HUF 50-100 billion per month, which Hungarian taxpayers would have to pay for in the end.
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