MOL Chairman and CEO Zsolt Hernadi has cautioned that a full halt to crude oil deliveries via the Druzhba pipeline could pose serious risks to Hungary’s energy security, potentially pushing fuel prices at domestic stations up by around 10 percent.
In an interview, Hernadi explained that while higher prices would be a concern, the bigger challenge would be ensuring sufficient crude oil volumes to keep refineries operating. The Druzhba pipeline has been the backbone of Hungary’s crude imports since 1964, but geopolitical tensions and recent disruptions — particularly linked to the conflict in Ukraine — have raised doubts about its reliability.
Hungary is seeking to reduce its dependence on Russian oil, but Hernadi stressed that full independence will take time. MOL’s refinery in Százhalombatta is expected to be fully capable of processing alternative crude types only by 2027, following a €520 million infrastructure upgrade. Currently, the facility can handle about half Brent-type oil and has tested 17–18 different crude grades, but secondary refining units still need adjustments to process oils with different chemical properties.
Replacing Druzhba’s daily supply of roughly 42,000 tons of crude would be a major logistical challenge. It would require the equivalent of 800 railcars or 170 tanker trucks every day, making such a shift both costly and complex. Hungary holds strategic reserves covering about 30 days of crude and an additional 45 days of refined fuels, but these would serve only as a temporary safety net in the event of a prolonged disruption.
Although the country also receives oil through Croatia’s JANAF pipeline, Hernadi noted that this route alone cannot meet Hungary’s full needs and comes with much higher costs, with transit fees up to four times those of Druzhba. Even in short-term supply issues, MOL estimates that fuel prices could rise by about €0.10 per liter.
Hernadi emphasized that diversification is essential, as having two pipeline routes benefits both Hungarian and Slovak consumers. However, he said the main concern is not price volatility but the risk of reduced refinery output, which could directly threaten energy security.
For now, the Druzhba pipeline remains a critical part of Hungary’s supply system. Hernadi concluded that moving away from it will require significant time, investment, and long-term stability in infrastructure and energy policy.
