Hungary to face a shortage of basic food items due to the price cap?
Fidesz has introduced a price cap for some basic food items in Hungary. As the end of the food price cap approaches, Hungarians have started buying up. The result is that Hungary could face a shortage of basic food items. Not only food but also petrol is being bought in large quantities in Hungary.
Food shortage in Hungary?
The food price cap officially ends on 1 May. The Hungarian government has set a maximum price for 6 food items. Hungarian Prime Minister Viktor Orbán said last week that Fidesz intends to extend the measures.
Food prices could rise by up to 20-30 per cent without the cap.
As there has been no official announcement on the extension of the price cap, Hungarians have started to buy up stocks in supermarkets. Zoltán Karsai, the president of the Trade Union of Commercial Employees, confirmed the spread of the buying-up wave, portfolio.hu reports.
The government has not yet given any official information on the future of the price cap. The Ministry of Innovation and Technology said the measure would save thousands of forints for Hungarian families.
Read also: State-owned MVM became the sole universal energy provider in Hungary
The Hungarian fuel market is exploding
Népszava.hu reports that in the first quarter of the year, 3 per cent more fuel was consumed than this time last year. Data published on Thursday by the Hungarian Mineral Oil Association (MÁSZ) shows that between January and March, Hungarians filled up with 1.1 billion litres of fuel. This new record is 120 million litres more than the previous record from 2019.
The gas oil market has seen a 43 per cent increase.
Motor gasoline 95 is up 42 per cent. This is noteworthy because the popularity of 95 petrol has been on the decline in recent years.
This is clearly due to the price cap on petrol.
The petrol price freeze started six months ago, on 15 November. The increase in traffic is not only due to Hungarian drivers. Foreign hauliers and residents of border towns and villages also often fill up in Hungary. Despite record demand, the industry has lost out on the price cap. The purchase price is constantly increasing, but the selling price cannot rise with the purchase price.
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