Fuel prices in Hungary are among the lowest in the European Union thanks to the government’s decision to cap retail petrol and diesel prices at 480 forints (€ 1.30) per litre, an official of the innovation and technology ministry said on Saturday.
The policy to cap fuel prices is an integral part of the government’s scheme to cap utility bills, state secretary Tamás Schanda said in a video on Facebook.
He said that “unlike the left”, the government believes it has a duty to intervene if price increases threaten the economy and households.
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Schanda said the policy had lowered the per litre prices of petrol and diesel by 26 forints and 32 forints, respectively.
He said opposition prime ministerial candidate Péter Márki-Zay opposed government intervention in the price of fuel and instead urged people to “buy smaller cars”.
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Of course the government could have just reduced the Fuel Duty that it charges on petrol. That would have had the same effect but without ruining a number of small petrol stations who (according top a recent article), after overheads are now selling petrol at a loss.
Also the salaries and human dignity here are one of the lowest in the EU
Doping the economy with price caps, in this case introduced solely out of electoral purposes, will not help. On the contrary, it is likely to lead to a disaster.