The Hungarian government eliminated the fuel price cap
The Hungarian government removed the fuel price cap, after the measure caused a supply crisis and panic among drivers, who formed huge queues at gas stations across the country, writes Reuters, quoted by digi24.
Prime Minister Viktor Orban's chief of staff said that the Executive in Budapest had to give up the ceiling, on the recommendation of the oil companies, who qualified the situation as "critical". He also said that dropping the cap would most likely boost inflation, which reached 21.6% in October, its highest level since 1996 and the third highest in the European Union, according to Eurostat.
The import deficit is a consequence of the fuel price cap imposed by the government in Budapest, which has led foreign companies to reduce their fuel supplies to Hungary. In November 2021, Budapest decreed a fixed price of around 1.17 euros per liter of petrol. Reviewed every three months, the cap was last extended in September and was supposed to remain in place until the end of this year.
