Hungary will eliminate the cap on energy and gas prices for higher-consumption households from August 1, the Budapest Government announced on Thursday in a decree, which means many citizens will pay more for the extra energy they consume, Reuters reports.

The measures will help the Executive cover the “hole” in the budget, after the price cap has placed a significant burden on public finances, given that the global energy price has risen sharply.

According to the decree, households in Hungary will be eligible for the current energy price ceiling if they use electricity up to 2,523 KWh per year, but will pay about double if consumption exceeds this level, although the Government has assured that it will still be below the market price.

For gas, the limit for the current price ceiling is of 1,729 cubic meters per year, while above this level the market price will apply, which would represent a 600% increase, according to Agerpres.

Earlier, Hungarian Foreign Minister Peter Szijjarto said Budapest was discussing buying more gas from the world market before winter.

Since Russia’s invasion of Ukraine, inflation has risen significantly in Central Europe, amplifying already strong price pressures following the pandemic and causing central banks to sharply raise interest rates.

The Budapest government announced in November that gasoline and diesel prices could not exceed 480 forints ($1.29) per liter at gas stations, below current prices of more than 500 forints. Also, in February, the prices of some basic foods were capped.