Price freeze could be over in Hungary in less than a month
It is improbable that the government will maintain the price freeze beyond October. According to the Minister for Economic Development, Márton Nagy, the price freeze is not sustainable.
The Hungarian government had intended for the price cap to be temporary. This is backed up by the words of Márton Nagy, Minister for Economic Development. Nagy says the price freeze had done its job. These temporary measures only provide temporary solutions. The price shock on the market has made the price freeze necessary, but it cannot become permanent, 444.hu reports.
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Nagy also brought up inflation. The energy crisis affects everyone. The country needs to get out of this emergency as soon as possible. Nagy added that the refineries in Bratislava and Százhalombatta would soon be back in operation once the maintenance would be over. Shortages are expected to continue due to the surge in demand and the general shortage of diesel, 24.hu writes.
The minister said it was not a good idea to put a price cap on electricity prices at the EU level. “Sooner or later, everyone will have to pay market prices, and price caps will have to be removed because they have a market-distorting effect,” Nagy added. In other words, the cheap petrol and food prices will only apply until October. In all likelihood, the government will not extend it.
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Source: 24.hu, 444.hu
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4 Comments
Ok, let’s say it’s unsustainable…what about lowering the VAT on basics like water, electricity, fuel, food… 27% is sustainable?
The Hungarian “Propaganda” driven Machine of Government – continues its RHETORIC – in attempts to Soften – the massive blows still to be worn & witnessed by the greater percentage of the 9.6 million population of Hungarians – through their Lack of Economic & Financial Management.
The European Union – “Stressed” relationship with Hungary – the “peace meal” or attempted “Mea Culpa” by Hungary – to the EU – interesting to OBSERVE.
Could it be – viewed from “inside” the Power House – the decision makers of the European Union – in consideration of Hungarys “re-newed” application for EMERGENCY of a LIFE Line – FUNDING – that Hungary – “the eyes say PLEASE but whats going on in the HEAD”.
Interest Rates again increased in Hungary not helped by a Property Market, that is a BIG pond of Plasticine – that will be re-shaped in a down-ward trending pricing massive adjustment.
Inflation – Germany highest in 50 years at 8% – what about FACTUALLY in Hungary = 21% ???
Keep asking this QUESTION – what is GOING to Sustain the Hungarian Economy ?
Remember Hungary – in millions that by your VOTE – you re-elected this Government in Power.
Hungary – the Fidesz Party – under its Leader & present Prime Minister of Hungary – Victor Orban, continues to GOVERN us in a style based on Dictatorial – Ideas & Political Philosophy.
Winter is approaching – the economy is TIGHTENING – in millions growing in numbers, the FORINTS in our pockets is diminishing.
“When the Yoke is BROKEN,
the Burden is Removed.”
The “Yoke” on Hungary ???
Nothing to do with the EU Commission decision to open an infringement procedure against Hungary (INFR(2022)4076) for having introduced measures going against Internal Market provisions (e.g. Hungary imposing different fuel prices for vehicles with a foreign number plate and vehicles with Hungarian number plates) #smokeandmirrors
NOW Minister Nagy all of a sudden echoes what all economists have been warning about: “price caps .. have a market-distorting effect” (hello, petrol tourism, price caps on sugar, flour, sunflower oil, pork thighs, chicken breast and milk and supermarkets becoming an alternate source of supply to manufacturers). “Sooner or later, everyone will have to pay market prices”. Wow. Drop-the-mike moment! Totally normal in Hungarian politics, obviously. Nothing to see here. Perfect handling.