Hungarian energy company MOL, alongside its Slovak subsidiary Slovnaft, has escalated its ongoing dispute with Croatian pipeline operator JANAF by filing a formal complaint with the European Commission’s Directorate-General for Competition. The complaint centers on allegations that JANAF is imposing excessive transit fees that lack justification.
The contention arises from significant increases in oil transportation fees instituted by JANAF following the onset of the Russia-Ukraine conflict in 2022. MOL has reported that these elevated rates have persisted despite a 50% increase in oil volumes transported during this period, raising questions about the rationale behind such pricing strategies.
MOL and Slovnaft assert that JANAF has not provided adequate transparency regarding its pricing structure, failing to disclose its cost framework or tariff methodology over the past four years. Comparisons drawn by MOL reveal stark disparities between JANAF’s charges and those of other European pipeline operators. Specifically, they note that the fees charged by JANAF exceed three times those of the TAL pipeline and are nearly double the costs associated with the Ukrainian Druzhba pipeline, which operates under more challenging conditions. In contrast, transport fees in Slovakia are approximately four times lower, while Hungary’s fees are around three times lower, and Belarusian systems are reported to be seven times cheaper.
MOL contends that JANAF possesses a dominant market position for supplying crude oil to refineries in Hungary and Slovakia. Under EU competition regulations, entities in such positions are prohibited from imposing unfair pricing or trading conditions, which could be deemed as an abuse of market power.
<pThe Hungarian group further claims that JANAF is leveraging the geopolitical landscape created by Russia’s invasion of Ukraine to sustain inflated transit charges, particularly given the diminished operational capacity of the Druzhba pipeline. Additionally, MOL accuses JANAF of generating uncertainty regarding shipments of Russian crude that align with EU and US sanctions, as there has been a lack of clear communication from the Croatian side regarding the transport of legally permissible deliveries.
This is not the first time MOL and Slovnaft have raised these issues; they had previously submitted a complaint to the European Commission earlier in March. The ongoing dispute complicates their contractual relationships, with negotiations still unresolved and MOL currently without a valid oil transport agreement for 2026.
Moreover, planned capacity tests on the JANAF pipeline system have yet to commence, which MOL attributes to delays caused by JANAF’s actions.
