Hungary's government has placed a cap on fuel prices in a bid to shield consumers from sharp price rises and keep a lid on surging inflation, which hit 6.5% last month.

Drivers are now filling up for 480 forints per liter of fuel, the equivalent of $1.50.

Otto Grad, secretary-general of the Hungarian Petroleum Association said this is a ‘real problem’ for small gas stations that have to meet the difference between the cap and market prices.

Judit Szego, a project manager at the Clean Air Action Group, explains why subsidies are needed elsewhere.

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