Hungary to cap petrol and diesel prices as fuel costs surge

The price cap on fuel will be in place for three months, Hungary said.
The price cap on fuel will be in place for three months, Hungary said. Copyright AP Photo/Frank Augstein, File
By AP, AFP
Share this articleComments
Share this articleClose Button

Petrol stations that charge more than the established cap could be shut down, the government has said.

Hungary's government has said it will limit the price of petrol and diesel amid soaring fuel prices.

ADVERTISEMENT

The price cap will be in place for three months and will then be reviewed, government minister Gergely Gulyas told reporters on Thursday.

"[This] will support the economy and contribute to a reduction in inflation," Gulyas said.

Fueling stations that charge more than the established cap could be shut down, he added.

The decision came as fuel prices have climbed to near-record levels in Europe, pushed by inflation, dramatic crude oil prices, and increasing demand.

Average prices for petrol and diesel are more than 50% higher per litre in Hungary than this time last year, rising above the symbolic mark of 500 Hungarian forints (€1.37) per litre.

But a new cap of 480 forints (€1.32) per litre of fuel will go into effect nationwide on Monday.

The decision to cap fuel prices also came amid other financial woes in Hungary that could play a role in April's national elections.

Inflation reached 6.5% in October, its highest level since 2012 in Hungary, according to the Central Statistical Office.

Share this articleComments

You might also like

The contours of Russia’s energy exports are defensible | View

Firms in Hungary can now require their employees to get a COVID jab

Hungary calls for foreign nationals to bridge labour gap despite hardline immigration policies