Hungarian Prime Minister Peter Magyar has stated that natural gas arriving from Russia is not cheap, rejecting claims made by the country's previous government.
Speaking in comments reported by Hungarian television broadcaster ATV, the European Union leader said that payments for gas supplies delivered to Hungary are calculated using wholesale stock exchange prices rather than discounted fixed rates.
Magyar explained that while base commodity prices reflect exchange benchmarks, transit fees vary significantly depending on the transportation route used to move the gas into the country.
Hungary, a landlocked nation in Central Europe, relies almost entirely on cross-border pipelines to meet its domestic heating and industrial energy demands. Previous administrations in Budapest frequently defended their energy agreements with Moscow, asserting that close bilateral ties guaranteed lower utility prices for domestic consumers.
Push for energy diversification
Magyar stated that Hungary is now committed to diversifying its energy imports and wants to contract with as many different international providers as possible to avoid over-reliance on limited sources.
Relying on fuel from only two sources is insufficient to protect the national economy, Magyar said. He argued that the country should instead strive to purchase natural gas from eight separate sellers to guarantee security of supply and give Hungarian buyers the leverage needed to negotiate better prices.
Across the European Union, natural gas contracts are increasingly tied to continental spot exchanges rather than long-term bilateral agreements. Because landlocked importers must pay transit tariffs to each neighbouring country through which a pipeline passes, transport fees can significantly increase the final delivered price at the border.
Rising inflation across Hungary
The prime minister's remarks coincided with newly published economic data showing that annual inflation in Hungary has accelerated for the third consecutive month.
Consumer price growth reached 2 percent last month, up from 1.6 percent recorded in September, according to official figures that became public the day before Magyar spoke.
Controlling energy costs remains a vital concern for economic policymakers in Central Europe, where fluctuations in fuel import bills directly affect manufacturing expenses, household utility budgets, and headline inflation rates across the broader economy.
