klarika

As we have had huge utilities price leaps in the Uk just wondered if people still find utilities Gas / Electricity cheaper in Hungary?

Peter_in_Hungary

Hungary still has one of the cheapest gas and electricity prices in the EU because the government has a fairly aggressive price cap on domestic prices however when these prices are set against the average wage then the picture is not so good. There is also a price cap on some groceries e.g. cooking oil, white flour and granulated white sugar. Whilst useful I question the health implications of price capping white sugar and white flour.

With regard to gas V.Orban some time back did a long term deal with Russia which fixed a (now very) low price which so far Russia seems to be holding to its contract which means that Hungary is a bit insulated from the recent dramatic increases. The implications for the Hungarian economy would be severe if the EU enforced a ban on Russian gas without supporting some sort of alternative. Hungary also has an oil refinery that refines mostly Russian oil and would require a major refit to refine other oil.

Sachina

I saw this article in the Financial Times about MOL's plans for the future

https://www.ft.com/content/87308996-...d-7c69cc019e8c

Hungary’s MOL prepares to move away from Russian oil

Peter_in_Hungary

The problem with moving away from Russian oil is that the refinery will need a major refit
Quote
https://hungarytoday.hu/mol-immediat...pply-problems/
It would take hundreds of millions of dollars in investments and several years for MOL Plc. to completely switch from Russian oil to other types, the Hungarian oil company said in a statement, adding that they are still investigating exactly what investments would be needed.
End quote
Which is one of the reasons why Hungary is against a ban on Russian oil in the short term.

The war in Ukraine looks likely to speed up considerably the move to renewables in Europe e.g
https://www.euractiv.com/section/ene...mps-mandatory/
The Dutch government intends to ban new fossil fuel-centric heating system installations as of 2026, while introducing the mandatory use of heat pumps or connections to heat networks.

However many countries including Hungary are or will suffer from electric grid capacity in the rush to renewable electricity. Hungary has already evidenced this with the reduction of solar panels allowed on houses with a single phase supply from the previous 5kWp to now 2.5kWp

wolfi

There is also a price cap on some groceries e.g. cooking oil, white flour and granulated white sugar.
The effect of this is that neither our Lidl nor the Tesco had sugar and sunflower oil for several days!
And now Lidl has limited buying, max 2 kilos.

Jack_Russells4ever

Tesco is limiting white flour to (1) per day and Sugar to (2)

Pulaski

So enforcing a price cap which requires sellers to sell below market price depresses supply while simultaneously stimulating demand? 😕

Hmm, I didn't see that coming! 😲

Perhaps I'd understand if I hadn't skipped the Economics 101 course. 🙄

xavierx

I don't think this is being caused by price caps, there has been zero sunflower oil in the UK (as is the case in most of Europe right now) for months. After 6 weeks of searching I managed to get some low end vegetable oil that was in stock in one Aldi in my area

scrubbedexpat142

We must be hogging all the sunflower oil, plenty around here yesterday.

Sachina

I've had no problem either. And no limits on the amount of flour or sugar either

xavierx

Sounds like you are doing better than the UK then, Germany is even worse, people are selling it on ebay for up to £20 a litre as people are desperate to buy it given how long its been unavailable in some regions

scrubbedexpat142

Maybe Sachina & I should hire a van & do a sunflower run to Germany!

Peter_in_Hungary

That is why some supermarkets have a limit

scrubbedexpat142

We're going to have to go to a lot of supermarkets!

Haven't seen any signs, yet, in our local supermarkets.
​​​​​​

Peter_in_Hungary

A bit more on price caps, as of Friday (27th) the price of petrol and diesel will be shown at about 700huf/ltr. the "proper" market price. This is what will be paid by all non Hungarian registered cars. Hungarian cars will be charged at the subsidised rate (480huf) at the checkout. This is to stop fuel tourists coming in from neighbouring countries to benefit from the Hungarian (tax payers) subsidies.
I'm not sure what the EU will make of this apparent discrimination. (e.g. EU pensioners benefit from free travel in Hungary and not to give this would be discrimination under EU regs.).