The government is postponing several fuel tax increases

The Hungarian government plans to postpone the increase of excise taxes on premium gasoline, premium diesel, and kerosene from January 1, 2027, to July 1, 2027, due to high fuel prices. The tax increase will be based on the inflation rate of 1.2% from July 2026. Additionally, the proposed tax credit for personal income tax will be implemented, converting all existing tax base allowances into amounts that reduce payable taxes. The current excise tax rates are 165.63 HUF per liter for gasoline and 155.16 HUF for diesel, with the planned increase resulting in a slight rise in consumer prices. The impact of the tax delay will primarily affect a small segment of fuel consumers, as premium fuels represent a minor portion of total fuel sales. Kerosene, mainly used in commercial aviation, is generally tax-exempt, so the delay will mainly affect private air travel fuel.