Hungary’s incoming government is set to maintain key welfare measures introduced by the outgoing administration, including the retail margin cap and controlled fuel pricing, at least in the short term.
According to statements by representatives of the Tisza Party, the decision reflects recognition of the significant relief these policies provide to households amid ongoing economic pressures.
András Kármán, an economic policy expert for the party, said in an interview that while the measures will not be scrapped immediately, the government is considering a gradual phase-out that would avoid placing additional burdens on consumers. Given the proximity of current deadlines, no changes are expected by the end of May.
The margin cap, first introduced in 2025, limits the difference between wholesale and retail prices on selected essential goods. It was later expanded to cover large retail chains, setting a maximum margin of 10 per cent. The policy has been extended multiple times, most recently until 28 February 2026.
In parallel, the government introduced fixed fuel prices in March 2026 in response to international energy market volatility. Under the scheme, the retail price of 95-octane petrol was capped at 595 forints per litre, while diesel was set at 615 forints. A particularly strict element of the regulation requires wholesale and retail prices to be identical, effectively eliminating retail margins on these products.
Tisza Party leader Magyar Péter has indicated that an agreement has been reached to maintain the controlled fuel pricing system after the new government takes office. He stated that the measure would not impose additional costs on the state budget, although details of its financing remain unclear.
At the same time, Magyar called on outgoing Prime Minister Viktor Orbán to extend the reduced excise duty on fuel, which is currently set to expire at the end of April. The tax reduction was introduced as part of emergency measures tied to the international energy security situation.
While the continuation of these policies suggests a cautious transition in economic governance, questions remain over how long the measures can be sustained and what mechanisms will eventually replace them.
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