Hungary and Slovakia file new EU complaint over Janaf pricing

Croatia’s Janaf pipeline is once again under scrutiny as Hungary’s MOL and Slovakia’s Slovnaft have filed a complaint with the European Commission over its pricing practices. 

The companies claim Janaf’s transit fees are several times higher than those of comparable European pipelines.

According to MOL and Slovnaft, the current fee per unit in Croatia is more than three times higher than the rate charged by the TAL pipeline, which runs from the port of Trieste through Germany to Vienna. The fee is also nearly twice as high per unit as the Ukrainian section of the Druzhba pipeline, used by MOL, they say. The companies argue that Janaf’s prices exceed those of European pipelines with similar technical and economic conditions, including utilization levels.

MOL also alleges that Janaf is abusing its dominant monopoly position in the crude oil transport market for refineries in Hungary and Slovakia, violating EU competition rules. They claim Janaf is taking advantage of the fact that the Druzhba pipeline is currently not operating, and say the company should allow transport of Russian oil through its Omišalj terminal. The European Commission, however, has noted that sanctions enforcement is the responsibility of individual member states.

Croatian Prime Minister Andrej Plenković dismissed the complaints, defending Janaf’s pricing as transparent and cheaper than other pipelines.

“For transporting smaller quantities of oil over a short period, the fee is higher. For larger quantities over a longer period, the fee is cheaper and more favorable. That’s all. Overall, Janaf is still three times cheaper than the oil that previously arrived in Hungary and Slovakia via Ukraine—three times cheaper!” Plenković said.