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.

Gergely Gulyás explained that Ukraine cannot survive without EU funds, and the Hungarian government will not contribute to the disbursement of these funds. If Ukraine is unable to bring about a change of government in Hungary, it will be forced to open the Friendship pipeline. The question is whether “Ukraine can hold out until it can remove the Hungarian government from power,” he added.

Hungary has stopped diesel deliveries to Ukraine, but it is not doing so in the case of electricity and gas because Transcarpathia would suffer as a result. The government does not want to take any measures that would negatively affect the Hungarian community in Transcarpathia, the minister emphasized.

Brussels and veto

According to Gergely Gulyás, if Brussels were to bypass Hungary’s veto and provide funds to Ukraine, it would send the message that the rule of law no longer exists in the European Union.

Regarding the Druzhba oil pipeline, he reiterated that, according to Hungary’s compromise proposal, Hungary would no longer block the €90 billion in aid to Ukraine and the adoption of the 20th package of sanctions if the oil pipeline were opened and Ukraine provided some guarantee that such a blockade would not occur.

At the very least, Ukraine must commit to allowing EU, Hungarian, and Slovak experts to enter the country if deliveries are halted again, Gergely Gulyás said.

He also mentioned that

the Hungarian government had not received any direct feedback from the European Commission about the Hungarian fact-finding delegation traveling to Kiev, but a statement of support in principle had been made earlier.

Adria pipeline, Croatia

In the case of Croatia, the minister said that Croatia was awaiting “advice from Brussels, which it would consider an order if necessary” regarding energy supplies.

In other words, whether to comply with EU obligations or to violate them. “If they receive instructions to violate them, then I fear that the Croatian government is not the type of government that would resist Brussels’ well-intentioned advice,” said Gergely Gulyás, noting that this is a general problem.

According to the minister, it cannot be ruled out that the Ukrainians will attack the Turkish Stream, as Ukraine has already committed such acts of terrorism.

He said that natural gas can be supplied to Hungary from a total of six directions, although not all of them are the cheapest Russian ones. This guarantees security of supply even in the event of a possible shutdown of the Turkish Stream, he pointed out.

Regarding the Russian president’s earlier statement that Russia would make oil and natural gas supplies conditional on political conditions, and would only supply Hungary and Slovakia with energy if the countries continued to pursue the same policies as today, Gergely Gulyás said that since Russia is the seller, it is free to decide on this. However, since the Tisza Party and the DK are planning to break away from Russian energy sources, “in this case, their intentions coincide,” he said.

When asked how long Hungary could hold out if Ukraine continued to blackmail it with oil supplies, he said, “we hope for as long as possible.” To do this, crude oil would have to be purchased via the Adria pipeline, which would certainly be significantly more expensive. If the Croatians allow Russian crude oil to pass through, then “for a very, very long time“; if the capacity of the Adria pipeline is sufficient, as Mol claims, “then indefinitely,” but it will still be more expensive.

He also pointed out that the Százhalombatta refinery operates efficiently with Ural-type crude oil, and converting it to other types of oil would require an investment of hundreds of billions of forints.

Gergely Gulyás said that the protection of domestic energy facilities is commensurate with the level of threat.

According to the minister, fuel prices in some neighboring countries were a few forints lower than in Hungary on Wednesday. The introduction of the protected price serves to prevent gasoline from rising above 595 forints and diesel above 615 forints. In neighboring countries, prices have either already exceeded or will significantly exceed Hungarian prices within a few days, he said.

The introduction of a protected fuel price is an important guarantee for the Hungarian economy, which also contributes to keeping inflation under control, the minister emphasized.

When asked how long the protected price introduced for fuels would remain in effect, Gergely Gulyás said that

the maximum price will only apply if fuel prices exceed this level. If they are below this level, it will cease to apply. This would require the opening of the Barátság oil pipeline, and it would also be beneficial if the Iranian conflict were to end,

he said.

US President Donald Trump, Tisza party, money transport and more Q&A

Responding to a question, Gergely Gulyás said that US President Donald Trump is doing everything he can to bring about peace in the Russian-Ukrainian war and has ended several conflicts around the world, but it is also true that he has started a war against Iran.

He said that the United States had not asked Hungary to allow the use of its bases.

According to Gergely Gulyás, the chances of Hungary becoming a target are extremely slim.

When asked how long the war might last, the minister pointed out that 80 percent of people in the US oppose the deployment of ground troops, and the White House has said that the air strikes will last 4-6 weeks. So, based on this, if this is the case, then the war should be over in 3-4 weeks at most, he said.

Responding to questions, Gergely Gulyás also said that it was the Ukrainian president who crossed all boundaries by making death threats against the Hungarian prime minister. It was not Hungary that exceeded the usual forms of diplomacy, but the Ukrainian president, who did something unprecedented in European civilization, he said.

Responding to the statements made by a former Ukrainian security service officer threatening the prime minister and his family, the minister stated that the threats should be taken seriously and that the head of government’s security would be reinforced. Viktor Orbán will participate in the announced rallies and is unwilling to cancel his public events.

Among the possible and applicable measures is the expulsion of the former national security officer from Hungary, he said.

Regarding questions about the Ukrainian money transporter, he said that no charges had been brought in the case and that the National Tax and Customs Administration was conducting an investigation in accordance with anti-money laundering regulations.

He said that in any country in the world, a shipment containing more cash than the largest Hungarian bank transports in an entire year would have attracted the attention of the authorities.

Gergely Gulyás said that this is part of a process, with USD 900 million, EUR 420 million and 146 kilograms of gold transported through Hungary to Ukraine this year. Moreover, this was not done through Hungarian partners, but with “help linked to Ukrainian services”. That is why an investigation is underway, he added.

According to him, in previous years, the transport took place in a different form.

In response to the suggestion that this was a show of strength against Ukraine, Gergely Gulyás stated that the authorities do not engage in “such political activities”.

The minister called the arrival of Russian secret service officers in Hungary fake news. The purpose of publishing this fake news, which has no basis in reality, was to counterbalance Ukrainian President Zelensky’s threat against the Hungarian prime minister.

The Peace March will be of great significance, Gergely Gulyás emphasized, adding that standing up for peace now means not only peace for the country, but also peace for Europe, and in particular, it means that Hungary says no to supporting the war and being drawn into it.

He also encouraged people to sign the national petition, which is more relevant than ever: when it was announced, the government did not anticipate that the Ukrainians would shut down the Friendship pipeline.

He said that, as in previous years, drones could be used at the March 15 parades.

He indicated that Prime Minister Viktor Orbán’s tour of the country next week will be open to the public, “if anyone wants to go, they can go.”

Regarding Polish-Hungarian relations, he said that the Polish government and some of its members are hostile towards the current Hungarian government. He does not expect this to change, Gergely Gulyás said. He added that this is not because there is no intention to do so, but because the Polish side will criticize the current Hungarian government in every possible way, at least until the elections.

Regarding who Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky might support in the Hungarian elections, he said that the important thing is who is interfering in the elections, and in his opinion, “Ukraine is openly, directly, and deliberately interfering in the Hungarian election campaign.”

Regarding the prime minister’s statement in an interview last week that funds from Ukraine may be coming to the Tisza Party, Gergely Gulyás indicated that the declassification of the National Security Committee report is in progress.

Regarding Péter Magyar’s preparation of a narrative of fraud even before the election, he said that it is usually those who are preparing for defeat, or at least expect it, who talk about fraud before an election.

Gergely Gulyás said that Viktor Orbán had stated that, according to Fidesz-KDNP’s own measurements, there are 65-70 districts where victory is certain or likely.

Regarding the National Election Committee’s condemnation of László Salacz, the Fidesz-KDNP candidate in Kecskemét, for holding a campaign event at a secondary school—in which he himself participated—Gergely Gulyás explained that nothing at the Friday evening forum indicated that they were in an educational institution.

According to his interpretation of the law, the legislation applies to situations where classes are in session at the school, and no one is allowed to campaign among teachers and students, but in the future, he will be careful about the venues to which he is invited.

Regarding the fact that on Tuesday, the mayor of Csákberény ejected Telex staff from a press conference and forum attended by Deputy Prime Minister Zsolt Semjén, he stated that he considers it inappropriate and condemns all acts of violence, but at the same time, he points to the lack of solidarity among journalists, saying that when such things happen on the part of the Tisza Party, there is no great response in the left-wing press.