Hungary, where inflation is rampant, will block gas station prices for three months from Monday so that a liter of petrol and diesel does not cost more than 480 forints (1.31 euros), the government announced today.
“We have decided that from November 15 there will be a ceiling on the price of petrol and diesel,” said Gergely Goulias, head of the office of Prime Minister Victor Orban.
“This means it can be cheaper than 480 forints, but not more expensive,” he told a news conference in Budapest, adding that there was a “jump in fuel prices”.
In recent weeks, the prices of petrol and diesel have exceeded the symbolic limit of 500 forints per liter in many squares in this Central European country that is a member of the European Union.
“We are convinced” that the measure, which will be reviewed after three months, “will support the economy and contribute to reducing inflation,” Gulias said.
The service stations will not receive any compensation and the price of the share of the Hungarian energy group MOL on the Budapest Stock Exchange fell by about 3.5% after this announcement.
Orban, who after 12 years in power is a candidate in the parliamentary elections next April, is receiving increasing criticism from the opposition because of inflation.
The latter reached 6.5% in October, the highest level since 2012 in Hungary.
SOURCE: AMPE
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Source From: Capital
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