Hungary to give monthly cash aid to low-power diesel car owners

In response to soaring fuel costs linked to the Iran conflict, Hungary announced an automatic subsidy of 5,000 forints per month for diesel vehicles under 150 hp, running from September to December. The payments will be issued directly by the Hungarian tax authority using existing vehicle-registration records, eliminating the need for individual applications. This initiative joins a broader European trend of temporary fuel-price interventions, such as Germany's tax reduction and price-cap talks, Italy's exemption from vehicle tax for cars below 80 kW, and France's extended fuel subsidies and price-cap agreement with TotalEnergies.

Officials in several countries are also debating a windfall-profit tax on oil majors, with EU leaders urging the European Commission to act. The Hungarian program aims to provide immediate relief at the pump for a specific segment of drivers amid persistent price pressures.