Hungary, the second EU country to cap fuel prices. Viktor Orban announces new 'protected price'
Fuel prices will be capped starting at midnight, Hungarian Prime Minister Viktor Orban announced on Monday, the measure being intended to protect Hungarians from rising crude oil prices due to the war in the Middle East, reports AFP.
Hungary is the second member country of the European Union, after Croatia, which decided to cap fuel prices.
“We are introducing a protected price for petrol and diesel, beyond which retail prices will not be able to go,” Orban said in a video posted on his Facebook account.
The Prime Minister added that the Executive in Budapest also decided to remove fuel from the state reserve to guarantee the supply and specified that the “protected price” will apply only to vehicles registered in Hungary, notes Agerpres.
The Reuters news agency writes that starting Tuesday, the price of gasoline in Hungary will be capped at 595 forints ($1.75) per liter, and that of diesel at 615 forints ($1.81) per liter.
The measure applies to individuals, farmers, transporters and contractors, Orban said on Monday, citing the blocking of the Drujba oil pipeline, which crosses Ukraine, as one of the causes that led to the measure, in addition to the war in the Middle East.
Earlier, Viktor Orban asked the European Union to suspend sanctions against Russian oil and gas, given the war in the Middle East.
The nationalist leader, a close ally of Russian President Vladimir Putin, regularly criticizes EU sanctions against Moscow, using his veto power to get exceptions for Hungary.
Hungary also capped fuel prices between November 2021 and June 2022 to curb inflation ahead of elections in April 2022, which Orban then won with a landslide.
However, Orban was later forced to scrap the price cap on petrol and diesel after a fuel shortage led to panic buying at gas stations.
Crude oil rose above $119 a barrel on Monday, hitting levels not seen since mid-2022 until now, as governments scramble to limit the impact on economies and consumers.
