Hungarian government made an important decision about the fuel price cap!

According to a lately published government decree, the Orbán administration increased state support for small fuel stations from HUF 10 billion (EUR 25 mn) to HUF 18.5 billion (EUR 47 mn). That shows the government is not likely to end the fuel price cap in Hungary.

The Hungarian government introduced the fuel price cap in March, maximizing the price of 95 RON petrol and non-premium diesel at HUF 480 (EUR 1.2) per litre. Many thought that the decision was just an additional tool to garner votes for the coming general elections. But it remained in effect even after Orbán’s fourth consecutive landslide victory.

A lately published government decree has significantly increased state support for small fuel stations financially suffering due to the price cap. Therefore, 168 óra wrote that the price cap would remain in effect in Hungary even though the finance minister said a couple of days ago that the scheme would not be sustainable in the long run.

• Read also: Those who refuel in this way in Hungary may receive serious punishment

Budget deficit is still very high

Hungary’s cash-flow-based budget deficit, excluding local councils, came to HUF 2,892.3 billion (EUR 7.2bn) at the end of June, the Finance Ministry confirmed in a detailed reading of data on Friday.
The deficit widened from HUF 2,737 billion at the end of May. The full-year cash-flow-based budget deficit target is 3,152.7 billion.