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Hungary price caps could stay in place if war is entrenched, Orban says -Breaking


© Reuters. Viktor Orban, Hungary’s prime minister, arrives at the summit of European Union leaders. This is where EU leaders try to reach an agreement on Russian oil sanctions as a response to Russia’s invasion in Ukraine. It takes place in Brussels, Belgium, May 30, 2022. REUTERS/Johanna Geron/File Photo

BUDAPEST, Reuters – Hungary could keep its fuel price caps, basic food and energy in place for a longer time if Ukraine’s war is ensconced, Prime Minister Viktor Orban stated on Friday.

In the face of rising inflation Orban’s government established a ceiling on fuel prices mid-November. Then, it followed that up by caps on several staple foods in February. They will be expiring next month.

Recent restrictions on the range of the fuel price limit were placed on cars that have a Hungarian plate. This has caused conflict with EU directives, and the Hungarian energy organization MOL demanded the gradual elimination.

It all depends upon the war. Orban explained that war inflation is a result of war. These measures can be phased out more rapidly if there is peace. We cannot or will not be able to phase out these measures quickly if there is conflict.

Orban claimed that in Hungary, inflation which rose to 10.7% by May would have been 15% to 16% if the price caps were not put into place.