Hungary announced a cap on petrol pump prices Thursday as inflation soared to a nine-year-high, an issue that Prime Minister Viktor Orban's opponents have seized on ahead of elections next year.

Petrol and diesel prices have climbed over 500 forints (€1.37) per litre at many stations in Hungary in recent weeks.

Prices at the pump have also hit record highs elsewhere in Europe, including France and the UK.

"The government has decided that from November 15, the price of petrol and diesel will be capped at 480 forints per litre," said Orban's cabinet chief, Gergely Gulyas. 

"This means that the price of diesel and petrol may be cheaper than HUF 480, but not more expensive," Gulyas told a press briefing, pointing to a "leap in fuel prices" in the past year.

Orban, who faces an election slated for next April, has come under increasing pressure from an opposition six-party alliance over soaring inflation. 

After three landslide wins since 2010, polls predict that the nationalist premier will face his closest contest since he last lost a general election in 2006.

The price cap measure, which would be reviewed after three months, comes as annual inflation reached 6.5% in October, its highest level since 2012. 

"We trust that (the price cap) will support the economy and contribute to a reduction in inflation," Gulyas said.

The price limit will not apply to premium vehicle fuel products, and the government will not compensate retailers for the measure, he said.

The share price on the Budapest stock exchange of Hungarian energy giant MOL fell around 3.5% on the news.