Why Did Hungary Pay 30% More for Russian Gas Than EU Average?

  • 31 Mar 2023 9:24 AM
  • Hungary Around the Clock
Why Did Hungary Pay 30% More for Russian Gas Than EU Average?
Hungary paid Ft 556 per cubic metre for Russian gas in January, some 30% more than the EU average, G7 reports, citing data from Eurostat.

Runner-up Slovakia paid the equivalent of Ft 492, while the average import price paid by the EU27 was Ft 411 per cubic metre.

State-owned MVM accounts for roughly 90% of gas imports, as other players can also trade.

Hungary agreed to purchase an annual 4.5 billion cubic metres of gas from Gazprom in a 15-year contract signed in September 2021.

The price tracks quotes on the Dutch stock exchange with a two-month lag.

Russia also agreed to supply an additional 700 million cubic metres to Hungary in the autumn of 2022 based on an agreement signed by Foreign Minister Péter Szijjártó.

The importer, in that case, was the Hungarian Hydrocarbon Stockholding Association rather than state energy company MVM, G7 writes.

The contract fixed prices at their summer peak, according to the website, which pushed up the average price paid by Hungary.

However, the prices fixed in the long-term gas purchase agreement were also higher than the EU average, contrary to claims by Prime Minister Viktor Orbán, G7 adds.

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