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Hungary: Government to cut gas subsidies

As of January 1, 2008, gas and heating support system is to be changed, government spokesperson Bernadett Budai announced at a press conference in Budapest yesterday.

According to main opposition party Fidesz, as a result of the mentioned measures, families’ gas bills are to increase once again, through which the government is to further deepen the social crisis.

At the same time, Budai reminded that last year gas and central heating users had been grouped in five categories, based on monthly income per one household unit, out of which four categories were entitled to get support.

According to Budai, subsidies are to remain unchanged in the two lower categories of those with low incomes, while in the two higher categories, subsidies are to decrease in line with the inflation rate. (Gazdasági Rádió)