Hungary's legislation on oil security

Act No. XXIII of 2013 on the Strategic Stockpiling of Imported Crude Oil and Petroleum Products

Definitions

1. Emergency Stocks: Stocks of crude oil and petroleum products listed in Annex C of Regulation (EC) No 1099/2008 of the European Parliament and Council.
2. International Decision to Release Stocks: A decision by the Governing Board of the International Energy Agency to make crude oil or petroleum products available to the market.
3. Major Supply Disruption: A significant and sudden drop in the supply of crude oil or petroleum products.
4. Physical Accessibility: Arrangements for removing oil stocks from storage and releasing them for free circulation.
5. Crisis in the Supply of Crude Oil and Petroleum Products: A situation where imports fall below 7% of domestic consumption and emergency stocks must be used.

Calculation and Management of Emergency Stocks

1. Calculation: Based on the average daily net imports over two periods: the penultimate year for January-March and the reference year for April-December.
2. Composition: The Association calculates the average daily net imports by March 31 each year.
3. Requirements: At least 90 days' worth of emergency stocks must be maintained from August 1 to March 31 of the following year.
4. Sales: Stocks above the 90-day requirement can be sold, but not causing market disturbance. Announcements are made via the Association's website.
5. Ownership: Emergency stocks belong to the Association.
6. Removal: Removal requires prior written consent from the Association.

Specific Stocks

1. Creation: The Association can create specific stocks based on the decision of the Board of Directors.
2. Conditions: Stocks meeting the criteria for emergency and specific stocks can be included in both calculations.
3. Storage: Specific stocks must be stored in authorized facilities inspected for technical condition, safety, and environmental compliance.

Records and Data Preservation

1. Records: Separate up-to-date records for emergency and specific stocks must be kept.
2. Data: All data must be preserved for 5 years.
3. Access: The Minister can consult the records at any time.

Restrictions and Releases

1. Consumption Restrictions: The Minister can impose restrictions on consumption to restore stability.
2. Release Conditions: Emergency stocks can be released in cases of major supply disruptions, crises, or fuel shortages.
3. Decree Details: Decrees specifying the type, quantity, and deadline for replenishing released stocks.
4. Purpose and Measures: Decrees can specify the purpose, time schedule, and measures to restrict consumption or mandate minimum yields for refineries.

Storage

1. Cross-Border Storage: Emergency stocks can be stored in another EU member state with mutual agreement.
2. Delegation: Operators holding stocks on behalf of another member state cannot delegate this task to a third party.

This act aims to ensure a stable and uninterrupted energy supply in Hungary while enhancing tax collection efficiency through strategic stockpiling of crude oil and petroleum products.