This is the gas pipeline through which Hungary currently receives Russian gas.Continue reading
The current situation at Hungarian petrol stations is “outrageous”, Viktor Orbán said in his latest video. The Prime Minister explained that Ukraine has stopped gas supplies, while the US administration has introduced sanctions that will further increase energy prices.
Mr Orbán emphasized that Europe is drifting towards another energy crisis, from which Hungary should stay out. To this end, he travelled to Serbia during the weekend to ensure the protection of the only working gas pipeline, TurkStream, transporting gas directly from Russia to Hungary.
“Our task now is to protect the only remaining gas pipeline that brings gas from Russia to Hungary, and this pipeline comes to Hungary through Serbia. It is in our common interest to work together to protect our families, our households and our businesses from ever-higher energy prices. This is what we will be negotiating with the President ourselves,” the Prime Minister said in the video.
In connection with rising prices, the Ministry for National Economy told MTI on Saturday that the Ukrainian threat to oil supplies and US sanctions are combining to lead to a significant rise in fuel prices. According to the statement, the US Treasury Department has introduced strict sanctions on the “shadow shipping fleet” of Russian oil exporters and their related ship insurance companies. As a result, China and India, the world’s largest oil importers, will have to source more crude from other sources, such as the Middle East, Africa and the Americas. This further increases crude prices and transport costs, while demand for oil could also rise further in the cold winter months, especially in Europe and the United States.
As a result, the price of Brent oil has risen by almost 10 percent in the past month,
the Ministry pointed out.
Another complicating factor is the shutdown of the Friendship oil pipeline since Janury 1, after Ukraine did not renew its gas transportation contract with Russia. Furthermore, the security of the TurkStream has also become a challenge now, after the Russian Defense Ministry claimed last week that the Ukrainians used drones to attack an infrastructure that is crucial to the operation of the pipeline. The TurkStream plays a key role in Hungary’s energy supply, and it is therefore in Hungary’s vital interest that all parties involved ensure the security and smooth operation of the transport route, the Ministry for National Economy emphasized in their statement.
The part of the US sanctions package, which has a very negative impact on Serbian oil and gas company Naftna Industrija Srbije (NIS), also plays a role in the rise in fuel prices in the region, as the restrictive measure reduces the amount of crude oil and fuel available.
In Hungary, around 20-30 percent of fuel is imported, so external market developments have a direct and immediate impact on supply and fuel prices. The Ministry stressed that
the government is doing its utmost to stabilize the price of petrol and diesel in Hungary as much as possible, while ensuring security of supply.
The government’s objective remains unchanged: to guarantee that Hungarian fuel prices remain below the average prices in neighboring countries. Looking at the reference period, the average price of a liter of petrol in neighboring countries was HUF 637, while in Hungary, this price was 1 forint less. For diesel, the domestic price was one forint higher than the 654 forints per liter in neighboring countries.
Via MTI, Featured photo via Pexels
