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Hungary

Hungary holds public stocks and places no separate compulsory stock obligations on industry.

The Hydrocarbon Stockpiling Association (MSZKSZ) is responsible for covering Hungary's full stockholding obligation as a member of the European Union. Therefore, it must hold stock levels no less than 90 days of domestic consumption of the three main product categories (gasoline, middle distillates and fuel oil). In practice, the agency holds levels in excess of the minimum requirement.

The MSZKSZ is an independent not-for-profit company. It is financed by compulsory membership of all crude and oil product importers in Hungary: membership levies are proportionate to the percentage of oil the company imports. Decisions concerning stockholding practices are made by the agency's board of directors.

At its general meeting, the board of directors determines the composition of reserves in accordance with the statutory provisions. One-third of the stocks are required to be kept in crude oil and two thirds in the form of petroleum products.

All volumes of compulsory oil stocks are owned by the MSZKSZ. They can be stored either in MSZKSZ-owned or co-owned storage tanks, or in capacity rented from the domestic market. All strategic stocks must be available for withdrawal within 48 hours of the government's order for release.

Hungary has a formal bilateral stockholding agreement with Slovenia to hold ex-territorial stocks; however, in practice no such stocks are currently held outside the state. A small amount of Slovenian oil stocks are held in the territory of Hungary. Hungary does not allow stock ticket arrangements.

See also Closing Oil Stock Levels in days of Net Imports