The Hungarian Ministry of Foreign Affairs and Trade, led by Peter Szijjártó, has identified gas price caps as a policy path Hungary will not support. In remarks aimed at outlining Hungary’s position, the minister stressed that the priority must be the secure and reliable supply of energy, arguing that price ceilings could disrupt this essential stability. He portrayed the idea of setting a fixed cap on gas prices as a policy that could be harmful, dangerous, and poorly aligned with Hungary’s energy security needs.
According to Szijjártó, such ceilings would not only fail to protect consumers in the long run but could also trigger unintended consequences in the country’s energy market. He asserted that maintaining flexible, market-based pricing is more likely to preserve uninterrupted gas flows and prevent shortages, even during periods of price volatility in international markets. While acknowledging the broader European debate on energy affordability, he insisted that security of supply must come first for Hungary’s households, industries, and critical services.
Despite his firm stance, the minister acknowledged that there is political momentum in several EU capitals to adopt price caps as a means to curb soaring energy costs. He noted that some member states, including Italy, have signaled openness to exploring reductions in wholesale gas prices, potentially targeting levels around €200 per megawatt-hour. This prospective policy shift, if implemented, would represent a significant change in how energy markets are managed across the European Union and could influence cross-border contracts and supply arrangements.
On the substantive question of how Hungary would respond if price caps were adopted at the EU level, Szijjártó suggested that Hungary may need to renegotiate or adjust its long-term gas contracts with suppliers, including those involving large-scale imports from Russia. He indicated that such renegotiations could become necessary to align Hungary’s contractual framework with any new caps or price-stabilization mechanisms that EU policymakers might pursue. The minister’s comments came after a recent phone discussion with Alexander Novak, the deputy prime minister of Russia, during which he discussed the potential implications of price caps for Moscow’s energy agreements and the broader energy corridor into Central Europe. [DEA News]