Hungary retail fuels long-term outlook

Hungary is a mature market for oil products, where a relatively low penetration of electric vehicles (EVs) supports gasoline and diesel consumption. This trend will result in relatively stable service station sales by the end of the decade. MOL Group is Hungary’s sole refiner and dominates the country's wholesale oil products market. Its ownership and control of most of the logistics infrastructure, notably oil product pipelines and storage terminals, further underpins its influence on the internal market. Free market forces determine pump prices in Hungary. However, MOL’s wholesale and supply market dominance enables the company to effectively set prices. The Hungarian retail market is highly concentrated. The top four players – MOL, Shell, OMV and Orlen – collectively account for almost 80% of sales volumes. MOL’s dominance in the wholesale market continues to restrict the penetration of hypermarkets.