The domestic diesel market can no longer soften the international price shock

The gap between diesel import prices and retail prices in Hungary has nearly disappeared, with the retail price remaining unchanged since mid-September. The price margin shrank from 88 HUF in January to just 2.6 HUF in September, indicating a 97% reduction. The wholesale margin has turned negative, dropping to -13.5 HUF per liter, raising concerns about supply security as 30% of diesel consumption is imported. A potential solution involves raising domestic diesel prices to align with regional levels, which could require a 14 HUF increase. This adjustment could stabilize the market, although some experts suggest a more significant increase of 50 HUF may be necessary to fully mitigate fuel tourism.