BUDAPEST, Sept. 11 (Xinhua) -- The Hungarian government will provide a monthly subsidy of 5,000 forints (about 16 U.S. dollars) to nearly one million diesel car owners through December to compensate for rising fuel prices, Prime Minister Peter Magyar announced on Friday.
The measure will apply to owners of diesel-powered vehicles with a maximum engine output of 150 horsepower, including individual entrepreneurs and agricultural producers.
Magyar said eligible motorists would receive a total of 20,000 forints (63.97 dollars) over the four-month period, corresponding to 5,000 forints per month.
According to Magyar, the amount reflects the approximate difference between current market prices and the previously protected fuel price for a typical refueling. The subsidy will be paid automatically, without requiring an application.
He said the measure was designed to help motorists most affected by the diesel price rises while excluding high-performance and expensive vehicles from taxpayer-funded support.
Magyar also announced additional assistance for the agricultural sector. Agricultural users will be allowed to reclaim the full amount of excise duty included in the diesel price until the end of the year.
The government aims to prevent higher global oil prices from significantly increasing agricultural production costs and subsequently feeding into food prices, Magyar said.
Diesel prices in Hungary have risen sharply in recent weeks amid higher global oil prices, reaching 701 forints (2.24 dollars) per liter, the highest level in four years.
The government of former Prime Minister Viktor Orban introduced a temporary fuel price cap in March amid surging crude oil prices, limiting petrol prices to 595 forints (1.90 dollars) per liter and diesel to 615 forints (1.97 dollars) per liter.
After taking office, Magyar's government decided in June to phase out the cap as international oil prices eased following a framework agreement between the United States and Iran. ■