Economy 20 February 2026, 9:11am

Hungary releases 40 percent of its strategic oil reserves

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The Hungarian government is tapping into a significant portion of its strategic crude oil reserves following the halting of shipments through the Druzhba (Friendship) pipeline. According to a decree published in the Hungarian Gazette, 250,000 tonnes of crude oil will be released from security reserves to ensure the continuity of domestic and regional fuel supplies. This is because pipeline transport has been suspended for an indefinite period.

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The sale of the released quantity is subject to strict rules. The Hungarian Hydrocarbon Stockpiling Association (MSZKSZ) will begin sales immediately at the price specified in the legislation,

with MOL playing a key role in the process.

The oil company can use the offered stock until mid-April 2026. In return, Mol undertakes to replenish the entire quantity to the association by the end of August 2026.

The government has stated that, although there are no technical obstacles to restarting the Barátság pipeline, deliveries will not resume. This makes it necessary to use temporary reserves. It is important to note that the quantity released now accounts for around 40% of strategic reserves, constituting a significant intervention.

The measure serves a dual purpose. Firstly, it provides an immediate solution to supply difficulties caused by lost imports. This is also the primary aim of EU stockpiling regulations, which set minimum reserve levels for member states. Secondly, the decision acknowledges that dependence on the Druzhba pipeline poses a serious ongoing risk. In the event of a prolonged disruption, it would take more time and incur higher costs to implement alternative solutions, such as maritime transport or the use of other pipelines.

From Mol's perspective, securing a supply of raw materials for its refineries is critical. According to industry sources, the company is already exploring alternative procurement channels, including sea transport via the Croatian port of Omišalj. However, this solution involves complex logistics, with several days passing from the arrival of the first shipments to their delivery to the refineries. Strategic reserves will be used to bridge this transitional period until the new supply routes are operating at full capacity.

The regulation sets out precise economic parameters, including quantities, timeframes, pricing and replenishment obligations. The key question for market participants is whether this measure will be sufficient to maintain stable wholesale supply. It is also questionable whether further interventions will be necessary, such as at the level of refined products, if pipeline deliveries are suspended for an extended period. The problems surrounding the Druzhba pipeline highlight the importance of strategic reserves, which is why it is crucial to replenish stocks in full by the August deadline.