Fuel price cap introduced, Hungary’s energy supply faces a double threat – Government briefing

The energy situation poses a double threat, said the Minister heading the Prime Minister’s Office on Thursday in Budapest at the Government Information Office.

Energy supply crisis

Gergely Gulyás said that the crisis is partly due to the war situation. The disruption of safe transport through the Strait of Hormuz means that one-fifth of the natural gas and one-third of the crude oil produced worldwide cannot reach their destinations safely.

“In this situation, it is doubly harmful that President Zelensky has closed the Druzhba oil pipeline,” said the minister, emphasizing that this is the safest pipeline route for Hungary to obtain crude oil, and that it is also where we can obtain high-quality, low-cost Ural crude oil.

The protected price therefore protects Hungarians from the consequences of the Ukrainian president’s oil blockade, Gergely Gulyás pointed out.

The minister recalled that the government decided on Monday to introduce a protected price for fuels: the maximum price for gasoline was set at 595 forints and for diesel at 615 forints. Cars with Hungarian license plates can be refueled at the protected price, but not only private individuals can purchase at this price, but also transporters, entrepreneurs, companies, and owners of agricultural machinery, he pointed out.

The minister said that they are expecting a debate in the European Union on this issue. At the same time, he stated that the European Commission should not criticize the fact that the cabinet has extended the measure to Hungarian consumers only. He added that if the government did not do so, so many people would come from neighboring countries to fill up their tanks that Hungarian reserves would run out very quickly, he pointed out.

Gergely Gulyás said that

the European Commission should put pressure on Ukraine to comply with the provisions of the association agreement and not to violate its obligation to allow the transport of energy resources through its territory.

The professional delegation was sent to the Druzhba oil pipeline in order to “prove our good faith” and “despite all the insinuations that have been made,” he said, adding that this had also been communicated to Ukraine in a diplomatic note prior to the delegation’s departure.

Gergely Gyulyás stated that the Ukrainian president does not want to acknowledge the Hungarian fact-finding delegation, which clearly shows that there is no obstacle to resuming transport via the Druzhba oil pipeline.

He said that it is obvious that the Hungarian expert committee will also be able to confirm what “we already know,” namely that the Druzhba oil pipeline has not suffered any damage that would make it impossible to reopen the pipeline.

“The very fact that Ukraine does not want to acknowledge President Zelensky does not want to acknowledge this delegation, clearly shows that what we have said is true, and what we have proven with satellite images and other previous communications, as well as communications between Mol and the operators of the Druzhba oil pipeline, that there is no obstacle to the resumption of transport,” he said.

Gergely Gulyás stated:

Hungary continues to maintain this position, and at next week’s European Union summit, Prime Minister Viktor Orbán will represent the view that Ukraine cannot count on Hungary’s support as long as “President Zelensky threatens the country’s energy supply.”

Gergely Gulyás emphasized that if the Ukrainian president lifts the blockade, Hungary will support the other EU countries in granting credit on behalf of the EU, which, as he put it, “is in fact a non-repayable grant to Ukraine.”

Furthermore, we will continue to block the twentieth package of sanctions as long as this situation persists, until Ukraine reopens the Druzhba oil pipeline, he said.

The government condemns the harsh threats made by Ukrainian President Volodymyr Zelensky and Ukraine against the Hungarian prime minister, said the minister heading the Prime Minister’s Office.

Gergely Gulyás pointed out that all this is contrary to the rules of diplomacy, Ukraine’s EU candidate status, and the pursuit of good neighborly relations.

Is a statement by a Ukrainian pensioner a threat to the entire Ukrainian people?

We believe that neither the prime minister, nor the country, nor the prime minister’s family should be threatened, he said. He added that they understand that Ukraine wants to see a different, pro-Ukrainian government in Hungary, which is why it is worth threatening them.

After a Ukrainian pensioner with no connection to the government threatened Orbán and his family, government communications are now talking about threats from the entire Ukrainian people. Our article – Orbán family threatened: Ukrainian ex-MP warns the Hungarian PM over Ukraine policy

He said that by blocking the Friendship oil pipeline, they are interfering in the campaign because “there are pro-Ukrainian and Ukrainian-friendly political forces in Hungary (…), Tisza and DK, who represent a position contrary to that of the Hungarian government, and therefore Ukraine has an interest in their victory,” – he said.

This is possible, but interference in Hungarian domestic politics is not possible, he stated, emphasizing that “this must be rejected, and we do not consider threats against the country, the government, the head of government, or the head of government’s family to be acceptable,” he said.

The government is convinced that Hungary has sufficient reserves of crude oil to maintain fixed, protected fuel prices, he said.

Gergely Gulyás said that Mol has already started imports to ensure security of supply, and that the country is able to obtain crude oil through the Adria crude oil pipeline. However, he pointed out that there is a dispute between Hungarian and Croatian experts about the capacity of this pipeline, and it is by no means certain that this infrastructure would be able to fully serve the Hungarian and Slovak oil refineries. However, he considered it certain that the shortfall in supplies could be partially compensated for in the short term, and that the issues relating to capacity would soon be resolved, with the current situation serving as a test, he added.

Following information from Moscow, Turkish Stream attacked

The government condemns Ukraine’s attack on the Turkish Stream natural gas pipeline on Russian territory because it threatens Hungarian and European energy supplies, said the minister heading the Prime Minister’s Office.

If you missed it today – Energy pipelines under fire: alleged TurkStream attack and Druzhba shutdown risk – what it means for Hungary

Gergely Gulyás said that the cabinet, which has condemned Russian aggression against Ukraine in general, strongly condemns any attack that threatens European energy supplies.

Any attack on facilities serving energy security is not only an attack on a country, but also an attack directly affecting the European Union, he said, emphasizing that as long as the war continues, facilities serving energy security must be given special protection.

He emphasized that they are calling on the parties involved in the war, both the aggressor and the victim, “not to threaten energy infrastructure, because this would jeopardize the European Union’s energy supply at a time when energy prices are skyrocketing worldwide,” he said.

Investments in the campaign period

Investments worth more than HUF 105 billion were made in Hungary last week in 29 projects, the government spokesperson said.

Eszter Vitályos said that the Nívó Group, which manufactures security entrance doors, is building a new factory hall in Pécel worth five billion forints, for which the government is providing 1.6 billion forints in support, thus helping to create 115 jobs.

The Rosenberger Group, which manufactures electronic components, is expanding its capacity at its sites in Jászárokszállás, Jászberény, and Nyírbátor at a cost of HUF 47 billion, with the government providing HUF 14 billion in support, thereby contributing to the creation of 200 highly skilled jobs.

The latest investment by Hungarian-owned Bayer Construct Zrt. will create 200 new jobs in Sóskút, further strengthening the construction industry, which is one of the key pillars of the Hungarian economy. As a result of the investment, a 12,000-square-meter bathroom assembly plant will be built in Sóskút, and the company will also establish a precast concrete, carpentry, and locksmith plant. The total value of the projects is nearly HUF 12 billion, with the government providing HUF 5.5 billion in support.

The Danish company Xellia is building an automated pharmaceutical manufacturing plant worth HUF 28 billion, for which the government is providing HUF 7 billion in support, thus helping to create 91 highly skilled jobs.

Graboplast Zrt., a Hungarian-owned company and market leader in Central Europe in the field of special flooring, is implementing a HUF 9.3 billion capacity expansion and research and development project in Győr, for which the government is providing nearly HUF 3 billion in support.

The German-French-owned HBPO Professional Services Kft. has established a new global service center in Győr, which was created primarily to support research and development projects. The investment is worth HUF 1.5 billion, for which the government has provided HUF 440 million in support, enabling the creation of a total of 58 new jobs.

Eszter Vitályos also reported that a new gym was built in the kindergarten in Bácsbokod with 112 million forints in support. In Sarkad, an equipment development project was implemented in the nursery with 94 million forints in support,

she added.

According to her, two new vehicles were added to the vehicle fleet of the hospital in Szentes, and in Csákánydoroszló, the health center was renovated with 200 million forints in EU and state subsidies.

In addition, the government spokesperson reported that Putnok had gained a new community space, with a previously disused warehouse being renovated with approximately 350 million forints in funding from the TOP PLUSZ program to provide a home for local civil organizations and various cultural programs.

“Pro-Ukrainian opposition would give up cheap Russian oil and natural gas”

The government wants to use all means at its disposal to reopen the Barátság oil pipeline, Gergely Gulyás emphasized in response to a question. He added that the Ukrainian president dares to block oil shipments because Hungary has no national minimum in this matter, in terms of maintaining utility price reductions.

The pro-Ukrainian opposition would give up cheap Russian oil and natural gas. There is hardly a leader of the Tisza Party who has not made a statement on this, just as Ukraine’s EU membership is part of their program. Tisza politicians in the European Parliament voted in favor of the proposal calling for an immediate end to Russian exports, the minister said.