Will utility and fuel prices soar in Hungary after the EU bans purchasing Russian oil and gas?
Despite the deal struck with Trump, the European Union plans to prohibit the purchase of Russian oil and gas soon. Are utility bills and fuel prices set to soar?
Although Prime Minister Viktor Orbán managed to secure an agreement with Trump allowing Hungary to continue purchasing Russian oil and gas, the European Union remains firm in its stance that these imports must end as soon as possible. Deadlines have been set—and they are not far off.
Russian oil in Hungary
According to the Hungarian government, Russian oil holds at least three major advantages over Western supplies for Hungary. First, MOL’s refineries are designed to process it, and switching would incur significant costs. Second, lacking a maritime outlet, Hungary relies on pipelines that can only deliver Russian oil. Third, it is the cheapest option available.
The reality, as discussed on the Heti Válasz podcast, is that Russian Urals crude costs less than the Western Brent variety because it is of lower quality—containing higher sulphur content and longer-chain molecules. Moreover, it is not particularly cheap for Hungarian consumers, as domestic fuel prices remain broadly comparable to those in neighbouring countries.
- Hungary’s new energy plan quietly redefines Russia as a risk
Válasz Online reports that the European Council wants to ban Russian oil imports from 2028, cutting off a crucial revenue stream for Moscow. The European Parliament favours an earlier ban. If this goes ahead, America’s exemptions will count for nothing.
Who currently benefits from cheaper Russian oil? The price difference stands at around 4–5 US dollars per barrel, yet 90% of this gain goes to the Hungarian budget. ERSTE expert Tamás Pletser notes that this is no longer a significant amount. So, even without Russian oil, any increase in costs for consumers would likely be minimal, as the extra burden falls mostly on state coffers, not households.
Russian gas and the utility price reduction scheme
The government claims that Russian gas is essential to keep household energy bills low. Menedzsment Fórum argues that the Americans have not imposed any restrictions here. According to Válasz Online, there could have been issues with the Serbian section of the TurkStream pipeline, but these were resolved thanks to the American exemption. The government has committed to purchasing 600 million US dollars’ worth of liquefied natural gas (LNG), which covers only about 10% of domestic demand.
- Hungary is heavily dependent on Russian energy, but public ignorance about the issue is immense
However, the EU is once again taking a tougher stance: the European Commission proposes banning new gas contracts with Russia from 1 January 2026 and halting short-term ones by 17 June that year. Hungary’s current contract runs until 2036, covering about 4.5 billion cubic metres annually—roughly 75% of the country’s gas needs. According to Menedzsment Fórum, the EU does not intend to interfere with this existing agreement.
Therefore, it is a theoretical question whether energy subsidies would disappear if Russian gas stopped flowing. The crucial unknowns are how much cheaper the gas currently is and whether the Hungarian budget could cover the price difference. The Gazprom contract remains confidential, so no details are available.
Taxpayers foot the bill for the utility price reduction scheme
Tamás Pletser has previously stated that Russian gas is likely the cheapest source, with prices reflecting the Dutch TTF stock exchange trends—albeit with a two-month delay—and including delivery costs. Energy expert Attila Holoda points out that it is unclear whether middlemen are taking a cut, adding to costs.
- Click for more news concerning the Hungarian energy sector.
One telling indicator of the system’s “cost-effectiveness”, and the myth of cheap Russian gas, is that the Hungarian Electricity Works received over 484 billion forints from the state budget to cover energy subsidies for regular households—excluding businesses—in the first half of the year alone. This money comes from Hungarian taxpayers. If Russian gas were truly inexpensive, such subsidies would not be necessary. Experts suggest that Russian gas is actually more expensive than non-Russian alternatives available on the market.
HUXIT and you will have free will on your own bussiness. just done expect someone to defend you like you were waiting in 1956
Another day, another E.U. act to make the lives of ordinary people more difficult.
Would to good gracious this despicable monstrosity were taken behind the barn and put to sleep already!
So Hungarian taxpayers are paying to subsidize overpriced Russian gas and no one can see the terms of the secret agreement Orban signed with Russia that ties Hungary for another 11 years until 2036. Vote for them again suckers if you want more financial mismanagement and an even lower standard of living. Orban is working hard to wreck any future you might have by putting the country further and further into debt with the Chinese and now the Americans. Hungary could have billions of euros free from the EU if it votes for Tisza which will comply with Rule Of Law regulations. Oh we can’t have that! We would sacrifice our precious sovereignty to the EU instead of to China and the US as Orban now does but not for free money but for debt that will hang on the necks of Hungarians.
The picture of DESTRUCTION the name Victor Mihaly. Orban has CREATED of Hungary.
Of – No Trust.
Of – No Respect.
Of – No Truth.
Orban has BLUDGEONED Hungary time and time again in the (16) sixteen years of his Prime Ministership.
Orban, his “Heinous” Fidesz Government that are “toxic in culture” delivered Hungary to the financial and economic MESS we “live in” to-day.
Orban has FAILED us individually in millions and Hungary.
Orban his “under the table” deals, the “greasing of his & others PALMS” – at the expense of millions upon millions over (16) sixteen years not forgetting the gargantuan Fidesz Government DEBT in Borrowings that are individually debts to every tax paying Hungarian citizen – Heinous.
Orban – has SOLD us out Hungary and he continues ON just “piling” us Hungary into a “new age” deepening darkening Abyss.
Orban his DOWNFALL come spring of 2026 through the POWER of the Voting Rights of the people of Hungary – must be a FALL, an outing of HUMILIATION which is Deserving to the name, the “Judas” of DEMOCRACY in the member countrys of the European Union and Europe and Globally countrys of Governance or support respect the name DEMOCRACY.