Hungary: government decides to cap fuel prices

The government of Hungarian Prime Minister Viktor Orban has decided to cap fuel prices.

AP - Laszlo Balogh

Text by: RFI Follow

1 min

From November 15, 2021, prices at the pump will be blocked for three months in Hungary.

The annual inflation rate is indeed worse than expected: in October, it exceeded 6%.

Behind this protectionist measure, the government also has an electoralist ulterior motive. 

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With our correspondent in Budapest,

In recent weeks, gasoline and diesel prices have exceeded the symbolic bar of 500 forints, or 1.37 euros per liter.

From Monday, motorists will pay less for fuel.

It will cost a maximum of 1.30 euros.

What to calm the discontent of the consumer, more and more irritated by the galloping inflation: more than 6% per year, its highest level since 2012.

Waltz of labels

In the markets, it is the waltz of the labels;

the price of fruits and vegetables continues to increase.

Like other countries, Hungary is facing the rise in oil prices which is causing fuel oil prices to soar: + 47% in one year!

As fuel oil is the main item of expenditure for farmers, the increase is reflected in food production.

Welcome gift

For months, the opposition has accused

of doing nothing to curb inflation.

By blocking gasoline prices, the government is killing two birds with one stone.

It defuses criticism from the opposition, and it puts money back in the consumer's wallet.

A welcome gift a few months before the legislative elections.

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• Hungary

• Economy

• Energies