- Hungary ends fuel price caps for foreign-registered vehicles; starts two-tier pricing.
- Hungarian-registered cars pay 480 forints per liter; foreigners pay market rate (700-900 forints).
- Aims to curb fuel tourism and protect subsidized reserves; impact on Romanians and cross-border trade.
- Diesel previously about 3 RON cheaper per liter; ~150 RON savings per full tank.
Starting Friday, drivers with vehicles registered in other countries will no longer be able to refuel in Hungary at the capped fuel prices. The announcement was made by Gergely Gulyás, the chief of staff to Prime Minister Viktor Orbán. The new measure introduces a two-tier pricing system: a capped price for Hungarian-registered vehicles and a market-aligned price for foreign-registered vehicles.
Context: Hungary, the cheapest European country for fuel
Hungary currently holds the lowest fuel prices in Europe. This sizable pricing gap has generated a steady flow of drivers from neighboring countries, especially from border regions, who came to refuel at Hungarian stations. The so-called “fuel tourism” has reached a scale that, according to Budapest authorities, threatens the sustainability of the price-capping program for Hungarian citizens.
In Hungary, gasoline is kept at about 1.3 euros per liter (approximately 480 forints), compared with 700-900 forints in other European countries – a difference of up to 50% compared to prices across the continent.
The new differentiated-pricing system
To curb the influx of foreign drivers taking advantage of preferential tariffs, Hungarian authorities will implement a dual price system:
- Drivers with Hungarian-registered cars: 480 forints per liter (capped price)
- Drivers with foreign-registered cars: price aligned with the European market (700-900 forints per liter)
This differentiation is based on the country of registration of the vehicle and will be applied at all fuel stations across Hungary. The measure follows a notable increase in foreign vehicle traffic fueling in Hungary, putting pressure on the subsidized fuel reserves.
Direct impact on Romanian drivers
Romanians are among those most affected by this decision. Residents in the western part of the country frequently engaged in “fuel tourism” toward Hungary, a phenomenon confirmed by the consistently higher traffic at border checkpoints.
Lost savings
Earlier in May, the price difference was significant:
- Diesel in Hungary: about 3 RON cheaper per liter than in Romania
- Savings per full tank: approximately 150 RON
- Statistics: at gas stations in the first Hungarian border town, one in five cars was registered in Romania
Economic and social consequences
This measure has important implications for cross-border trade and for Romanian drivers who travel frequently to Hungary or pass through the country. For residents of western counties (Arad, Timiș, Bihor), the economic advantage of fueling in Hungary disappears entirely.
Additionally, for professional drivers and transport companies operating on routes through Hungary, this change could mean significantly higher operational costs. The 3 RON per liter difference in diesel, multiplied by a vehicle’s annual consumption, represented substantial savings that will now be lost.
Precedents in Europe
Hungary is not the first country to implement such differentiated measures. Other European states that have subsidized fuels have faced similar challenges linked to fuel tourism and have adopted solutions to protect resources intended for their own citizens.
It remains to be seen whether this measure will be effective in the long term and whether other countries in the region will adopt similar policies to safeguard their subsidized fuel programs.
