Hungary extends price controls on fuel costs until May
Hungary's Prime Minister Viktor Orban has extended a fuel price cap until at least mid-May as the government aims to keep a lid on surging inflation.
A cap on fuel costs has been extended by the Hungarian government as it battles to help consumers with the cost-of-living crisis. The price cap was due to expire on February 15, but it was extended by the prime minister. Viktor Orban said during his state-of-the-nation speech that "The price cap has worked, therefore we are extending it for another three months."
Fuel prices are being capped at $1.53 per liter until at least mid-May. The move helps the public but hurts filling stations, which are paying $1.55 per liter. Some gas stations have already had to close, while others are warning of bankruptcy.
Meanwhile, shares in oil & gas firm MOL - Hungary's biggest company - have been hit. The cap on fuel costs is part of a package of measures by the government to try to shield consumers from price rises and keep a lid on surging inflation.
Consumer prices in Hungary rose by 7.9 percent year-on-year in January. That is the highest level since August 2007, according to the latest figures from the Central Statistics Office.
Orban's government put curbs on the cost of basic foods in February, extending caps already in place on the price of energy, fuel, and mortgage borrowing. The government also put a limit on retail mortgage interest rates until the end of June.
The aim is to protect borrowers from increasing repayment costs after inflation prompted the central bank to raise interest rates more than expected. Orban's government is giving households a tax rebate worth $5 billion in the run-up to the vote.
The latest polls show that the government has a slim three percentage point lead over the opposition, with the election due on April 3. For the first time since 2010, Orban and his ruling nationalist Fidesz party will face a united front of opposition parties at the polls.
It is set to be the closest vote since Viktor Orban came to power 12 years ago.
Fuel prices are being capped at $1.53 per liter until at least mid-May. The move helps the public but hurts filling stations, which are paying $1.55 per liter. Some gas stations have already had to close, while others are warning of bankruptcy.
Meanwhile, shares in oil & gas firm MOL - Hungary's biggest company - have been hit. The cap on fuel costs is part of a package of measures by the government to try to shield consumers from price rises and keep a lid on surging inflation.
Consumer prices in Hungary rose by 7.9 percent year-on-year in January. That is the highest level since August 2007, according to the latest figures from the Central Statistics Office.
Orban's government put curbs on the cost of basic foods in February, extending caps already in place on the price of energy, fuel, and mortgage borrowing. The government also put a limit on retail mortgage interest rates until the end of June.
The aim is to protect borrowers from increasing repayment costs after inflation prompted the central bank to raise interest rates more than expected. Orban's government is giving households a tax rebate worth $5 billion in the run-up to the vote.
The latest polls show that the government has a slim three percentage point lead over the opposition, with the election due on April 3. For the first time since 2010, Orban and his ruling nationalist Fidesz party will face a united front of opposition parties at the polls.
It is set to be the closest vote since Viktor Orban came to power 12 years ago.
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