Hungary to cap gas prices as Iran war fuels global oil shocks, Orban says

The move came amid soaring global oil prices as the Iran war, now in its second week, ensnares countries and infrastructure critical to the production and movement of oil and gas.

Hungary’s government will introduce a price cap on gasoline and diesel at fueling stations beginning at midnight local time, Prime Minister Viktor Orbán announced on Monday.

The move came against the backdrop of soaring global oil prices as the Iran war, now in its second week, ensnares countries and infrastructure critical to the production and movement of oil and gas.

In a video posted on social media, Orbán said “the international oil price explosion has reached Hungary as well,” and that the government would cap the price of gasoline at 595 forints ($1.75) per liter and diesel at 615 forints ($1.81) per liter.

He added that the capped price would only apply to vehicles with Hungarian license plates and registration documents, and that Hungary would free up its oil reserves to ensure adequate supply.

Orbán’s populist government, which is facing a major challenge against a center-right opponent in elections next month, placed a similar cap on fuel prices in November 2021 as prices soared following mass disruptions caused by the COVID-19 pandemic.

The cap was in place for more than a year before the government scrapped it due to soaring consumption and fuel shortages stemming from falling imports and production problems.

Earlier on Monday, Orbán, considered the Kremlin’s closest partner in the EU, urged the European Union to lift all sanctions on Russian fossil fuels to remedy the spikes in energy prices caused by the Iran war.

Orbán’s government has long opposed EU efforts to cut Russian energy imports, and along with neighboring Slovakia has maintained and even increased supplies of Russian oil and gas since Moscow launched all-out war on Ukraine on Feb. 24, 2022.