Hungary's Tisza Government Alters Fuel Pricing, Increases Small Business Loan Rates

The Hungarian government, referred to as the "Tisza-government," is implementing significant changes to its fuel pricing policy and small business loan programs. The administration is phasing out the current protected price cap on fuel. Instead, it will grant the minister responsible for trade policy the authority to set official prices for gasoline and diesel through decrees.

This new regulation allows for state intervention if market conditions change so drastically that consumer interests can only be protected through government action. Previously, the Orbán government had set a cap of 595 forints per liter for 95 octane gasoline and 615 forints for diesel for vehicles with Hungarian license plates and registration.

In parallel, the government is altering the interest rate conditions for liquidity loan products within the Széchenyi card program. Starting July 15, new contracts for liquidity-focused Széchenyi card loans will no longer be available at a fixed annual interest rate of 3%. Instead, the interest rates will be tied to the three-month Bubor rate, which stood at 5.89% as of June 18.

This means new contracts will likely start with an interest rate of 5.89%, a substantial increase from the previous 3%. The Fidesz parliamentary group acknowledged that these changes could affect tens of thousands of businesses. However, opposition parties have raised concerns, questioning what other support programs introduced by the previous government the "Tisza-government" might abruptly eliminate without prior consultation.