Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hungary could consider fuel price cap extension - Orban

Hungary could consider fuel price cap extension - Orban

Hungary will in February review and possibly extend a cap on fuel prices imposed for a three-month period from Monday, Prime Minister Viktor Orban told public radio on Friday, sparking a renewed sell-off in oil and gas group MOL's (MOLB.BU) shares.
Orban's government announced the cap last week in its latest effort to shield consumers from sharp price rises and keep a lid on surging inflation in the run up to a close election race next year.

Hungary's inflation surged to an annual 6.5% in October, above expectations, driven in part by a 30.7% increase in fuel prices.

The cap means that for a three-month period from Nov. 15, petrol and diesel prices cannot exceed 480 forints ($1.50) per litre at fuel stations, below previous prices of more than 500 forints, a key psychological level.

"You cannot sit back when prices are sky-high and when the dust settles, it becomes clear that they will not come back down overnight," Orban said, noting that higher fuel costs were also seeping into prices across the economy.

"This (price cap) will remain in place until February," Orban said. "If necessary, we will extend it, if not, then we will forget it."

MOL shares extended losses on Friday, hitting two-month-lows and underperforming the wider Budapest index (.BUX), which was also under pressure from a surge in COVID-19 cases to record highs in Hungary and a lockdown in neighbouring Austria.

Orban's remarks about a possible extension of the fuel price cap could also be pressuring MOL shares, a Budapest-based stock trader said.

Economists at brokerage Erste Investment said the deteriorating Hungarian COVID-19 situation could prompt Orban's government to extend a special legal order possibly until next year's election, paving the way for an extension of the fuel price cap.

In September, Orban extended a moratorium on loan repayments, one of his first responses to the coronavirus pandemic, before finally phasing it out for most borrowers this month.

A survey by think tank Zavecz Research published this week showed Hungary's united opposition retaining a four-point lead over Orban's ruling Fidesz in November, while the ranks of the undecided fell sharply.

Hungary's central bank, which expects inflation to exceed 7% in November, has pledged a "more extensive and longer lasting" policy tightening to curb inflation risks and anchor price expectations.

($1 = 320.29 forints)
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
German Chancellor Friedrich Merz: “The Current Welfare State Can No Longer Be Financed”
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
Wizz Air passengers screamed as storm-battered flight diverts to Bologna
European postal services halt U.S. deliveries after Trump imposes new tariffs
Urban explorer finds abandoned luxury restaurant left to decay
Fidesz leader labels Péter Magyar a ‘bluffer’ amid escalating political spat
French rope park operator arrested for denying entry to Israeli children
Újpest thrashes Zalaegerszeg 4-1 to secure first win in five matches
Profit-margin cap costs retailers 13 billion forints a month, warns trade group
Curiosity rover finds coral-like rock on Mars hinting at watery past
U.S. green policy rollback drives investors to Europe’s sustainable finance market
Special funerals rise in Hungary: boat, aerial and forest burials gain popularity
Hungary’s Kiskunság region turning into semi-desert after extreme drought
Kopasz Bálint wins world kayak 1000 m title in Milan, making him triple world champion
Budapest’s Keleti railway station to close for four weeks for track overhaul
Balaton could be unfit for swimming by 2035 and dry by 2050, scientists warn
Leaked guidelines show Meta’s AI allowed flirty and racist interactions with children
Filming of ‘Emily in Paris’ halted after assistant director dies on set
Filipino guest workers sue after Hungary moves to deport them for pregnancy
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
×