Hungary Announces Diesel Car Subsidies Amid Rising Fuel Prices and Shortages
Hungarian Government Response to Diesel Crisis
Subsidy Measures for Diesel Car Owners
BUDAPEST, Sept 11 (Reuters) - Hungary's government will give a targeted subsidy to compensate households using diesel-powered cars as fuel prices have risen but will not introduce a price cap as that could trigger supply shortages, Prime Minister Peter Magyar said on Friday.
Magyar said in a Facebook post that there was an unprecedented diesel shortage in Europe.
Details of the Subsidy Program
Global diesel markets have tightened sharply in recent weeks, with industry executives warning that supply would stay squeezed through winter due to limited spare refining capacity, Russia's export ban and approaching peak heating demand.
Magyar said his government would "provide direct and effective support to the owners of one million diesel-powered vehicles and their families."
Eligibility and Compensation Amounts
"By December, owners of diesel-powered vehicles with a maximum of 150 horsepower will receive a total of 20,000 forints ($63.96) in compensation," he said, adding that farmers will also receive help in the form of excise tax refunds.
Factors Contributing to Diesel Shortages
International Supply Constraints
Russia, normally the world's second-largest diesel exporter after the United States, extended its export ban through September 30, while Middle Eastern supplies have been curbed by the Iran war and reduced shipping through the Strait of Hormuz.
Domestic Challenges in Hungary
Compounding the pressure at home, Hungarian oil group MOL's main Danube refinery has operated at reduced capacity since a fire damaged one of its crude units in October 2025.
Exchange Rate Information
($1 = 312.7000 forints)
(Reporting by Krisztina Than, Editing by Louise Heavens)