Marton Nagy Summons Oil Sector Representatives Due to Drastic Fuel Price Increase
Budapest, Hungary - This week, representatives from MOL and the Hungarian Mineral Oil Association are scheduled to meet with Minister of National Economy, Marton Nagy, following substantial increases in fuel prices at domestic petrol stations in recent weeks.
During a press conference on a different topic, Nagy mentioned his recent discussion with György Matolcsy, Governor of the Central Bank of Hungary, emphasizing, "the past is past; we buried it."
"We had an agreement with the Hungarian Mineral Oil Association. However, we have noticed a deviation from the agreed terms. Therefore, I have called for a meeting with representatives from MOL and the Association in the latter half of the week," Nagy stated when addressing the drastic rise in fuel prices at local stations. He assured that an update will be provided after the meeting but acknowledged that Hungarian fuel prices have slipped from the mid-regional range agreed upon.
Nagy strongly advocates for public awareness on these matters. Discussing the economic outlook for the year, he estimated a 2.5% growth rate, which Prime Minister Viktor Orban also referred to during his trip to Bosnia last week. According to Nagy, the slower than expected GDP growth can primarily be attributed to the weak performance of the German economy and Hungary's export markets.
A CONSTRUCTIVE DISCUSSION WITH MATOLCSY
Responding to journalists' inquiries, Nagy also recounted his last week's meeting with Central Bank Governor Matolcsy, indicating that it marked an improvement in their relationship. "It was a good conversation, and I thank Mr. President for making it happen," remarked Nagy, who previously served as Deputy Governor of the Central Bank under Matolcsy. He added that the leaders of the two institutions cannot afford to be at odds, stating, "the past is past; we buried it." Their discussion focused on maintaining a sustainable 4% economic growth rate and enhancing the competitiveness of the Hungarian economy.
FAMILIES SPEND ON HOTELS AND RESTAURANTS
Addressing a question about the government's plans to extend mandatory discount schemes to non-food products following decreased sales volumes in February, Nagy preferred to wait for salary increases expected in March and April. However, he expressed optimism about the recovery of consumption, which is evident from tourism figures. "It's clear that families are spending on hotels and restaurants," he said.
GOVERNMENT TO TAKE LEGAL ACTION AGAINST SPAR
"Legal steps will be taken; this will happen," Nagy made clear, following SPAR's complaint to the European Commission regarding the government's retail tax. In response, the government is reportedly preparing for litigation. Nagy reminded that the European Union had accepted the retail tax, and it is currently considering whether to initiate an investigation. "This isn't unprecedented, but previously, such cases ended with the EU siding with the Hungarian government," he explained.
Regarding the Russian retail company Mere's establishment in Hungary, which Nagy learned about from the media, he commented, "We need to examine its legal and economic aspects."
STATE TO ACCELERATE SALE OF NON-ESSENTIAL PROPERTIES
"We will speed up the sale of properties that are not useful to the state; we will dispose of them," announced Nagy alongside Zsuzsa Lakner, CEO of the Hungarian National Asset Management Inc., during a press conference on the state's financial situation. Nagy pointed out that today's national inventory provides a complete picture of assets managed and owned by the state. Currently, the value of state assets, which has nominally doubled since 2010 from HUF 11,650 billion to HUF 21,860 billion, represents 25% of the country.
He emphasized that possessing such a significant amount of state assets also entails responsibility, hence the belief that the private sector could utilize them more effectively. "We are continuously transferring properties to the private sector," said Nagy. The MNV Zrt. achieved HUF 31.8 billion in revenues last year, surpassing its HUF 22.7 billion projection, with real estate sales contributing HUF 18.1 billion.
This year, the government expects HUF 39 billion in revenues, with HUF 32.7 billion expected from the sale of properties. The peak year was 2021, with HUF 66.6 billion in revenue, partly due to the sale of the MÁV headquarters and properties on Lake Balaton. However, the state no longer owns properties of such high value.
This year's focus will also include reviewing properties owned by ministries and their subsidiary institutions, with plans to begin their sale. Nagy emphasized that the year 2025 would be dedicated to streamlining the property portfolio of the state institutional system.
STATE OWNS 256,000 ASSETS
Zsuzsa Lakner, CEO of MNV Zrt., stated that selling these properties reduces costs since ministries no longer have to manage their maintenance. She revealed that the state manages 21,000 real estate properties and owns a total of 256,000 assets, including not only office buildings but also water management areas. Lakner mentioned that the increase in state property serves to facilitate the execution of state tasks, provide accommodation for budgetary institutions, and execute strategic acquisitions as decided by the government.
"We had an agreement with the Hungarian Mineral Oil Association. However, we have noticed a deviation from the agreed terms. Therefore, I have called for a meeting with representatives from MOL and the Association in the latter half of the week," Nagy stated when addressing the drastic rise in fuel prices at local stations. He assured that an update will be provided after the meeting but acknowledged that Hungarian fuel prices have slipped from the mid-regional range agreed upon.
Nagy strongly advocates for public awareness on these matters. Discussing the economic outlook for the year, he estimated a 2.5% growth rate, which Prime Minister Viktor Orban also referred to during his trip to Bosnia last week. According to Nagy, the slower than expected GDP growth can primarily be attributed to the weak performance of the German economy and Hungary's export markets.
A CONSTRUCTIVE DISCUSSION WITH MATOLCSY
Responding to journalists' inquiries, Nagy also recounted his last week's meeting with Central Bank Governor Matolcsy, indicating that it marked an improvement in their relationship. "It was a good conversation, and I thank Mr. President for making it happen," remarked Nagy, who previously served as Deputy Governor of the Central Bank under Matolcsy. He added that the leaders of the two institutions cannot afford to be at odds, stating, "the past is past; we buried it." Their discussion focused on maintaining a sustainable 4% economic growth rate and enhancing the competitiveness of the Hungarian economy.
FAMILIES SPEND ON HOTELS AND RESTAURANTS
Addressing a question about the government's plans to extend mandatory discount schemes to non-food products following decreased sales volumes in February, Nagy preferred to wait for salary increases expected in March and April. However, he expressed optimism about the recovery of consumption, which is evident from tourism figures. "It's clear that families are spending on hotels and restaurants," he said.
GOVERNMENT TO TAKE LEGAL ACTION AGAINST SPAR
"Legal steps will be taken; this will happen," Nagy made clear, following SPAR's complaint to the European Commission regarding the government's retail tax. In response, the government is reportedly preparing for litigation. Nagy reminded that the European Union had accepted the retail tax, and it is currently considering whether to initiate an investigation. "This isn't unprecedented, but previously, such cases ended with the EU siding with the Hungarian government," he explained.
Regarding the Russian retail company Mere's establishment in Hungary, which Nagy learned about from the media, he commented, "We need to examine its legal and economic aspects."
STATE TO ACCELERATE SALE OF NON-ESSENTIAL PROPERTIES
"We will speed up the sale of properties that are not useful to the state; we will dispose of them," announced Nagy alongside Zsuzsa Lakner, CEO of the Hungarian National Asset Management Inc., during a press conference on the state's financial situation. Nagy pointed out that today's national inventory provides a complete picture of assets managed and owned by the state. Currently, the value of state assets, which has nominally doubled since 2010 from HUF 11,650 billion to HUF 21,860 billion, represents 25% of the country.
He emphasized that possessing such a significant amount of state assets also entails responsibility, hence the belief that the private sector could utilize them more effectively. "We are continuously transferring properties to the private sector," said Nagy. The MNV Zrt. achieved HUF 31.8 billion in revenues last year, surpassing its HUF 22.7 billion projection, with real estate sales contributing HUF 18.1 billion.
This year, the government expects HUF 39 billion in revenues, with HUF 32.7 billion expected from the sale of properties. The peak year was 2021, with HUF 66.6 billion in revenue, partly due to the sale of the MÁV headquarters and properties on Lake Balaton. However, the state no longer owns properties of such high value.
This year's focus will also include reviewing properties owned by ministries and their subsidiary institutions, with plans to begin their sale. Nagy emphasized that the year 2025 would be dedicated to streamlining the property portfolio of the state institutional system.
STATE OWNS 256,000 ASSETS
Zsuzsa Lakner, CEO of MNV Zrt., stated that selling these properties reduces costs since ministries no longer have to manage their maintenance. She revealed that the state manages 21,000 real estate properties and owns a total of 256,000 assets, including not only office buildings but also water management areas. Lakner mentioned that the increase in state property serves to facilitate the execution of state tasks, provide accommodation for budgetary institutions, and execute strategic acquisitions as decided by the government.
Translation:
Translated by AI
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