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Cheap Russian oil, expensive Hungarian fuel: drivers pay more than Austrians despite government strategy
Hungarian motorists are seeing little benefit from the government’s long-standing reliance on discounted Russian crude, as fresh data show that fuel has become cheaper just across the border in Austria.
Despite repeated claims that Russian imports guarantee low prices and energy security, average petrol and diesel costs in Hungary now exceed those in several EU member states – including Austria, where wages are significantly higher and refiners do not rely on cheap Russian supplies, according to Mfor.
Russian oil advantage fails to reach consumers
The debate over Russian oil sourcing has resurfaced in recent weeks, with government officials and the leadership of MOL Group continuing to describe the imports as essential. Russian crude is currently around 15% cheaper than the Brent benchmark, which should theoretically translate into savings.
However, according to the Mfor Fuel Price Monitor and the EU’s European Commission Weekly Oil Bulletin, Hungarian drivers have not felt these benefits. Instead, the discount appears largely in company profit margins rather than at the pump.
The situation worsened after damage to the Druzhba pipeline halted deliveries to Hungary for nearly three weeks. In response, MOL requested access to strategic reserves, releasing 250,000 tonnes – roughly 40% of emergency stocks – enough to cover just over a month and a half. Seaborne shipments via the Adriatic route may provide relief, but the disruption highlights Hungary’s heavy dependence on Russia, which still accounts for about 90% of imports.
In an interview with Telex, MOL’s CEO even suggested that supply problems could push prices higher.
And Orbán’s govn. still lies about how times and times more expensive prices will happen if the CHEAP Russian oil will be replaced 😂
my buddy makes 0ver $22164 a m0nth doing this and she c0nvinced me to try. Single M0m Reveals How She Earns 75k/Yr W0rking 10 Hrs/Week From H0me The p0ssibility with this is endless………..……… https://goto.now/QiHYA
Hungary owns a big chunk of MOL. Isn’t it clear that MOL profits from buying oil low and selling petrol high — as dividends — are propping up Hungary’s budget ? Hungary literally can’t afford to lower petrol prices when oil is cheap. If oil prices rise, unless petrol prices also rise Hungary’s budget won’t work.
MOL is used to kickback money into the hands of the Fidesz elite. That is where it goes.
The Hungarian energy company MOL has to pay a special profit tax due to the substantial additional revenue from cheap Russian oil purchases and the “high” resale price, which translates into significant revenue for the state treasury.
However, this additional state revenue has to be financed by the population through higher fuel prices. So it’s simply a case of the money going from one pocket to another. One could, for example, simply lower the prices and abolish the special tax. I’ll explain later why this isn’t being done.
According to Hungarian energy policy expert András György Deák of Eötvös Loránd University in Budapest, the shift away from Russian gas will hardly affect consumer prices. This is because prices in Hungary have been capped by the state since 2013, making them independent of market developments.
“Ultimately, the government decides what energy prices are set for households,” says Deák. He considers it unlikely that the government would decide on a significant price increase so close to the parliamentary elections, especially since the ruling Fidesz party is trailing the opposition Tisza party in all reputable polls.
In his opinion, the Hungarian government is pursuing a “voluntaristic” policy on this issue: it is trying to avoid these additional costs by abolishing the special tax, particularly since it has already announced several expensive election promises.
One must consider that if this additional corporate tax were to be eliminated, Fidesz would hardly be able to maintain its numerous expensive election promises, its ubiquitous public propaganda, and the sums of money siphoned off into Fidesz’s coffers, which are ultimately financed by all motorists.
Now, due to increasing sanctions pressure, Hungary has no other long-term option than to decouple itself from Russian energy. The Hungarian government, however, is still trying to stall. It is still hoping to retain power. If nothing changes and the war continues, there is little hope that Hungary can maintain the status quo.
Orban finds himself in an uncomfortable dilemma!