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Hungarian MOL and Slovnaft Challenge JANAF’s Transit Fees to EU

The Hungarian energy company MOL, along with its Slovak subsidiary Slovnaft, has filed a formal complaint with the European Commission’s Directorate-General for Competition. The complaint focuses on the Croatian pipeline operator JANAF, which they accuse of imposing unjustified and excessive transit fees on oil transportation.

Since the onset of the Russia-Ukraine conflict in 2022, MOL claims that JANAF has made significant increases to its oil transportation fees, which have remained elevated despite a 50% increase in transported oil volumes. This raises concerns about the pricing strategy employed by JANAF during a period of heightened demand.

The lack of transparency regarding the rationale behind these price hikes is another point of contention. MOL asserts that JANAF has not disclosed its cost structure or tariff methodology over the past four years. Comparatively, MOL highlights that the fees charged by JANAF are more than three times higher than those of the TAL pipeline and nearly twice as high as those on the Ukrainian Druzhba pipeline, which operates in a conflict zone. In contrast, transit fees in Slovakia are approximately four times lower, while those in Hungary and Belarus are around three times and seven times cheaper, respectively.

MOL contends that JANAF possesses a dominant market position for delivering crude oil to refineries in Hungary and Slovakia. Under EU competition regulations, entities in such positions are barred from imposing unfair pricing or trading conditions, potentially constituting an abuse of market power.

The geopolitical ramifications following Russia’s invasion of Ukraine have reportedly allowed JANAF to maintain inflated transit charges. MOL accuses the operator of generating uncertainty regarding shipments of Russian crude oil that adhere to EU and US sanctions, as there has been no clear confirmation from JANAF regarding the transport of legally permissible deliveries.

This complaint follows an earlier submission by MOL and Slovnaft to the European Commission earlier in March concerning similar issues. The ongoing dispute complicates contractual relations between the parties involved, with negotiations remaining unresolved. Currently, MOL finds itself without a valid oil transport agreement for 2026.

Additonally, planned capacity tests for the pipeline system have yet to commence, with delays attributed to actions taken by JANAF. This situation underscores ongoing tensions within regional energy logistics and highlights potential regulatory implications for transit fee structures across Europe.

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