Hungary limits fuel prices, asks EU to suspend sanctions on Russian energy

BUDAPEST, March 9 (Reuters) - Hungary's Prime Minister Viktor Orban announced a cap on fuel prices after an emergency government meeting on Monday and urged the European Union to suspend sanctions on Russian energy, five weeks before he faces a pivotal parliamentary election.

Soaring oil prices, fuelled by the war in Iran, have driven global diesel and petrol prices higher, adding to the challenges facing Orban in the run-up to the election on April 12, where he is fighting to retain his 16-year grip on power.

Oil prices surged to more than $119 a barrel on Monday, hitting ‌levels not seen since mid-2022 as governments scrambled ​to limit the impact on economies and consumers.

"Ukraine's oil blockade and the Middle East war are driving prices up. Europe must face reality: we need to review and lift all sanctions on Russian energy," Orban wrote in a post on X.

Orban later said his government would limit fuel prices from Tuesday and would release reserves to ensure supply.

"Fuel prices have started to rise sharply across Europe, this is why at today's cabinet meeting we have made the decision to protect Hungarian families, Hungarian businesses and Hungarian farmers," Orban said.

Petrol will be capped at 595 forints ($1.75) per litre and diesel at 615 forints ($1.81) per litre. Capped prices will be available for vehicles registered in Hungary.

Despite implementing a string of voter-pleasing measures, which have widened Hungary's budget deficit, Orban's nationalist Fidesz party is trailing the centre-right Tisza in most polls, although the outcome of the vote remains highly uncertain.

Figures released on Monday showed that a pension top-up, higher family benefits, and wage hikes pushed the deficit close to half of the full-year target in the first two months of 2026.

Orban's previous government capped fuel prices in 2021 in a bid to curb surging inflation before the April 2022 election, which he then won with a landslide.

However, he was forced to scrap that fuel price cap in December 2022 after a lack of imports and panic-buying led to shortages.

Hungary is facing additional pressures as flows of Russian oil through the Druzhba pipeline have been suspended since late January, when Kyiv says the pipeline was damaged by a Russian attack. This stoppage has led to political tensions with Kyiv.

($1 = 340.2200 forints)