Hungary price caps could stay in place if war is entrenched, Orban says
2022.06.10 09:26
Hungary’s Prime Minister Viktor Orban arrives for the European Union leaders summit, as EU’s leaders attempt to agree on Russian oil sanctions in response to Russia’s invasion of Ukraine, in Brussels, Belgium May 30, 2022. REUTERS/Johanna Geron/File Photo
BUDAPEST (Reuters) – Hungary’s price caps on fuel, some basic foods and energy could stay in place for a longer period if the war in Ukraine is entrenched, Prime Minister Viktor Orban said on Friday.
Faced with a surge in inflation, Orban’s government set a limit on fuel prices in mid-November and followed up with caps on several food staples in February. The measures are due to expire next month.
The scope of the fuel price cap was recently narrowed to cars with a Hungarian licence plate, triggering conflict with the European Union, while Hungarian energy group MOL on Thursday called for the gradual phasing out of the measure.
“It all depends on the war. If there is war, then there is war inflation,” Orban said. “If there is peace, then we can phase out these measures more quickly. If there is war, then we cannot, or can only do so very slowly.”
Orban said without the price caps, Hungarian inflation, which accelerated to 10.7% in May, would be running at 15% to 16%.
