Cheap Russian oil, expensive Hungarian fuel: drivers pay more than Austrians despite government strategy

Hungarian motorists are seeing little benefit from the government’s long-standing reliance on discounted Russian crude, as fresh data show that fuel has become cheaper just across the border in Austria.

Despite repeated claims that Russian imports guarantee low prices and energy security, average petrol and diesel costs in Hungary now exceed those in several EU member states – including Austria, where wages are significantly higher and refiners do not rely on cheap Russian supplies, according to Mfor.

Russian oil advantage fails to reach consumers

The debate over Russian oil sourcing has resurfaced in recent weeks, with government officials and the leadership of MOL Group continuing to describe the imports as essential. Russian crude is currently around 15% cheaper than the Brent benchmark, which should theoretically translate into savings.

However, according to the Mfor Fuel Price Monitor and the EU’s European Commission Weekly Oil Bulletin, Hungarian drivers have not felt these benefits. Instead, the discount appears largely in company profit margins rather than at the pump.

The situation worsened after damage to the Druzhba pipeline halted deliveries to Hungary for nearly three weeks. In response, MOL requested access to strategic reserves, releasing 250,000 tonnes – roughly 40% of emergency stocks – enough to cover just over a month and a half. Seaborne shipments via the Adriatic route may provide relief, but the disruption highlights Hungary’s heavy dependence on Russia, which still accounts for about 90% of imports.

In an interview with Telex, MOL’s CEO even suggested that supply problems could push prices higher.

Hungary slips in EU fuel price rankings

While domestic prices have recently remained nominally stable, Hungary’s relative position in Europe has deteriorated.

This week, 14 EU countries recorded lower average prices for 95-octane petrol than Hungary – up from 13 the week before. Regionally, Austria has now overtaken Hungary, meaning drivers can fill up more cheaply there despite higher wages and no access to discounted Russian crude.

Diesel shows a similar pattern: Hungary ranks behind 13 EU countries, with Austrian prices again lower. Only Romania remains more expensive in Central and Eastern Europe, largely due to tax hikes.

Global risks push oil higher

Broader geopolitical tensions are also clouding the outlook. Brent crude has climbed above USD 71 per barrel after rising roughly 5% this week, raising the likelihood of further increases at Hungarian filling stations.

Tensions involving Iran have added uncertainty to global supply. Donald Trump recently warned of “very bad things” if Tehran does not curb its nuclear programme, while military exercises near the Strait of Hormuz – a route for about one-fifth of global oil trade – have alarmed markets. At the same time, US inventory data show falling stockpiles, further supporting higher prices.

More price hikes expected

Analysts warn that Hungarian fuel costs could rise as soon as next week. Instead of minor fluctuations of a few forints, increases of HUF 7–8 per litre are considered possible.

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