Household Utility Prices in Hungary Remain Lowest in EU, Exorbitant Convenience Fees Abolished – Weekly Roundup

Household utility prices in Hungary remain the lowest in the EU. The European Court of Justice ruling does not in any way limit or slow down the Paks II project, and good news has come about the output of the construction sector. Here is our weekly roundup.

Gas contract with Shell is central to diversification (Photo: MTI/Zsolt Czegledi)

Thanks to utility price cuts scheme, Hungary had the lowest gross end-user prices for electricity and natural gas for households within the European Union in August. Utility prices dropped somewhat in EU capitals last month, but residents there still pay much more than households in Budapest. On average, electricity costs 2.5 times more in the EU than in Hungary, and gas is four times as expensive.

Household utility prices in Hungary remain the lowest in the EU (Photo: Zoltan Havran)

Hungary Signs Long-Term Natural Gas Purchase Agreement with Shell

Hungary has signed a long-term natural gas purchase agreement with energy company Shell, which, in addition to preserving existing energy sources, also makes it possible to bring new ones into Hungary’s supply, announced Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto on Tuesday in Milan. He described energy supply security as a critically important issue, especially for a landlocked country with no coastline, emphasizing that this is not a political or ideological matter, but a physical and geographical one.

"The more sources and the more pipelines we have, the better," he added.

Highway vignettes – end of the outrageously high convenience fee

From September, the way vignettes are sold has fundamentally changed with unrealistically high convenience fees having been eliminated. Highway vignette sales in stores are now limited to outlets within five kilometers of gas stations and border crossing points. From now on, buyers will no longer have to pay a convenience fee, and resellers of the National Toll Payment Services Plc. (NUSZ) will receive a commission. NUSZ’s goal is to make purchases cheaper, more transparent, and safer – though questions remain about how resellers with lost revenues will react, and how quickly drivers will adapt to the new system.

Analysts say downgrade of Hungary is not justified.

After stagnation this year, exports and investments may put the Hungarian economy back on a growth path next year, say Erste’s macroeconomic analysts, pointing out that Hungary’s public debt cannot be viewed junk, and thus any potential downgrade would be unjustified. S&P will start the review on October 10 – the very agency that so far has given Hungary the worst rating, just one notch above junk.

No Obstacles: Rosatom Continues with Paks II

In a statement to Vilaggazdasag, Rosatom said that the project is important for the Hungarian economy, and that commissioning the nuclear power plant will ensure a stable and affordable source of electricity for the country. Therefore, together with its Hungarian partners, it will continue implementing the Paks II nuclear power plant project. The response came after the European Court’s ruling on Thursday.

The Court of Justice of the European Union annulled the decision that had approved the support agreement for the Paks II project, arguing that when granting approval, the Commission should have ascertained whether directly awarding the contract for building the two new reactors to a Russian company was in line with EU public procurement rules.

Rosatom emphasized in its statement that its primary task remains the implementation of the project in full compliance with the highest international safety standards and all contractual obligations.

Good News About Construction Output

In July, construction output was 4.9 percent higher than a year earlier. Within the main construction groups, construction of buildings grew by 5.7 percent, and civil engineering works by 4.7 percent. Based on seasonally and working day adjusted indices, the sector’s performance was 0.8 percent higher than in June 2025, reported the Central Statistical Office (KSH).

Construction already made a meaningful contribution to economic growth in the second quarter, and the latest data indicate this could continue in the third quarter as well. The sector is being driven partly by state orders, particularly road construction projects, as shown by order book data. At the same time, housing subsidies – such as the Housing Capital Program and the Home Start Program – have boosted demand, which could bring significant growth in residential construction too.