Hungary Lifts Price Caps on Petrol and Diesel

The Hungarian Parliament has approved the removal of fuel price caps, with 130 lawmakers voting in favor, 36 against and five abstaining.

The decision means that maximum prices of 595 forints per liter of petrol (about $1.91) and 615 forints per liter of diesel (about $1.98) will no longer apply, according to HVG.

The Tisza government said the measure was no longer justified because global oil and fuel prices had fallen and market prices were now below the regulated levels.

Economy and Energy Minister Istvan Kapitany told Parliament that Hungary should gradually move out of crisis mode and return to normal market conditions where possible. He also said confidence in the Hungarian economy was strengthening, citing a more than 15% rise in the forint against its pre-election level.

The government said the reduced excise tax would remain in place, as would the lower margin agreed by MOL.

Fidesz MP Janos Bencsik criticized the decision, arguing that price caps help keep inflation under control and that their removal was premature given uncertainty over the Strait of Hormuz and possible energy market volatility.

(mja)