BREAKING Hungary has given up capping the price of fuel for companies due to diesel shortages. The measure had been decided during the electoral campaign / In Romania, Ciolacu and PSD insistently demand the ceiling

Hungary’s government decided on Saturday to drop fuel price caps for company-owned companies, with the exception of taxi meters and agricultural machinery, it announced press from Budapest. The fuel price ceiling is now only valid for individuals who own a car.

Viktor Orban’s government decided to cap petrol and diesel prices at 480 forits per liter last November, when Viktor Orban was in the midst of his general election campaign. The capped price is around 6.3 lei per liter of diesel, and the normal price is 738 forints per liter of diesel, i.e. 9 lei.

The decree published in the official monitor also provides for the release of a significant amount of fuel from the strategic reserve to counter the shortage, as well as the increase in taxes for oil companies.

Later, the legislation was changed, being applied only to cars registered in that country, because there was a fuel tourism.

Analysts and companies that own gas stations have warned since last year that the price cap is an unsustainable measure, especially since Hungary is a net importer of petroleum products. The independent press from Budapest has repeatedly written that it is a measure of an electoral nature, intended to ensure populist Prime Minister Viktor Orban the sympathy of the electorate.

On Friday, the head of MOL, Hungary’s largest oil company, warned the government in a public speech about the imminent shortage of diesel in the country due to the refusal of suppliers to sell fuel in the country.

The model of price capping in Hungary has also made disciples in Romania, where Marcel Ciolacu and other PSD leaders have repeatedly requested the same type of measure, but rejected by the PNL.