To take some sting out of higher pump prices, the government is rolling out a 20,000 forint subsidy per vehicle, paid in 5,000 forint monthly installments through December. Only one car per person qualifies, and the support will not go to owners of more powerful vehicles.
Magyar said the program is aimed at owners of roughly a million diesel cars with engine capacity under 150 horse power. Farmers and the self-employed can qualify if the car is registered in their name. He did not put a price tag on the plan, but if each eligible car belonged to a different owner, the total would be about 20 billion forints, or $64 million.
Announcing the move in a Friday social post, Magyar said, "We have chosen a form of support that helps those that need it but which won't lead to fuel shortages or cost the budget another 50-100 billion forints." He rejected opposition calls for renewed government intervention in prices, saying such controls would overwhelm an already stretched budget, create shortages within weeks, and encourage "fuel tourism" from abroad.
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Since June, after the new government removed price controls, pump prices have floated with the market. When the Strait of Hormuz was partly shut, prices climbed to four-year highs, which in turn triggered opposition calls for renewed government intervention. The shock lands as landlocked Hungary, long dependent on Moscow for most of its energy, is already dealing with fuel supply disruption tied to Russia's full-scale invasion of Ukraine.
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