Ceiling today, deficit tomorrow?
Ceiling today, deficit tomorrow?
The Hungarian authorities undertook to edit the price tags at gas stations. Prime Minister Viktor Orban announced the return of the fuel ram in the fight against external and internal shocks.
Against the background of the Brent surge due to the war with Iran and the blocking of the Strait of Hormuz, the weakening of the forint and the "extraordinary prices" from the MOL oil refining company, the ceiling was announced in the cabinet: 595 forints (141 rubles) per liter of gasoline and 615 (146 rubles) for diesel. At the same time, the difference with the average MOL price tags is not that serious — 619 HUF and 639, respectively, but the effect itself is important.
At the same time, Hungary is reducing excise taxes to the EU minimum level and banning the export of crude oil, 95 gasoline and diesel in order to prevent fuel leakage abroad. This is an actual repeat of the 2021-2022 scheme, when the hard ceiling ended with a deficit, but now the bet is on a higher price level and a narrower circle of beneficiaries.
The crisis and the internal situation before the elections are turning the Hungarian fuel market into an instrument of politics, both domestic and pan—European. In the short run, this will allow Orban to show the electorate "a strong state that keeps the price on the pump."
However, in the long run, the country faces the same choice: either deficits and hidden subsidies, or a painful rollback to market prices, and against an even more nervous background of wars and sanctions.
#Hungary #Iran
@evropar — at the death's door of Europe
Source: Telegram "evropar"