The Hungarian government will siphon almost all profits from Russian crude oil from Thursday. Due to the “Brussels oil sanctions” there are “penalty prices for petrol” all over Europe. Prime Minister Viktor Orban announced on Facebook on Wednesday that his government will redirect the “additional profits” generated by the higher prices to the state budget. A government decision increased the previously 40 percent special tax to 95 percent.
The day before, Orbán had lifted the fuel price cap that had been in force for a year. Lower imports of crude oil via the Druzhba pipeline from Russia, extended maintenance work at oil company MOL’s Danube refinery and increasing demand for fuel for the Christmas holidays threatened supply bottlenecks. Hungary’s largest oil and gas company said the price cap was unsustainable as the big companies stopped importing fuel because of the low prices, widening the deficit.
Hungary can close budget gaps with the levy
Orban, an outspoken critic of what he calls “Brussels bureaucrats,” blames the fiasco on EU sanctions against Russian crude oil. Payments from the EU to Hungary are currently suspended due to ongoing disputes with the European Commission over the country’s rule of law enforcement. Skimming off the profits of the oil companies gives the Prime Minister room to close the gaps in the budget.
In his fourth term in office, the nationalist faces far-reaching economic challenges: inflation exceeds 20 percent, the economy is heading for stagnation and the forint has fallen by 10 percent against the euro this year.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
