Hungary faces energy security risks amid gas and diesel market pressures

Hungary is navigating significant challenges in its energy sector regarding both natural gas and diesel supplies. According to Szabolcs Ferencz I., CEO of FGSZ Földgázszállító Zrt., the country's gas supply security is not at risk if Russian gas imports cease, as capacities from Croatia, Romania, and Austria are sufficient to meet demand. However, the transition will likely lead to higher costs due to the loss of Russian transport subsidies and potential legal liabilities. A long-term contract with Russia through 2036 poses a financial risk; if international courts rule that Hungary must pay for unreceived gas volumes, the country could face substantial costs for up to nine years.

Simultaneously, the domestic diesel market is experiencing severe tension. While retail prices have remained stable at approximately 709 HUF per liter, the cost of importing diesel has risen above domestic wholesale levels. The profit margin for wholesalers has shrunk by 97 percent since the beginning of the year, dropping from 88 HUF to just 2.6 HUF per liter. Experts warn that if these negative margins persist, importers may reduce shipments, potentially leading to fuel shortages, especially since imports cover roughly 30 percent of Hungary's diesel consumption.