Eu · Associated Press Technology
Oil and gas prices won't immediately return to normal even if the Iran war ends, the EU warns
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NICOSIA, Cyprus — Skyrocketing oil and gas prices in Europe because of the ongoing Iran war won’t return to normal levels any time soon, even if peace is declared tomorrow, the European Union’s energy commissioner warned Tuesday.
Key facts
- He said the EU’s executive arm is preparing a string of measures designed to help families and businesses weather the huge spike in oil prices that have resulted in about a 70% price hike for gas
- Jørgensen also encouraged EU members to consider the International Energy Agency’s 10-point plan which includes work from home, reduced highway speeds, encouraging public transport and increasing car
- Commissioner Dan Jørgensen said although there are no immediate oil and gas supply shortages in the 27-member bloc, there’s pressure on diesel and jet fuel supply as well as “increasing constraints
- Jørgensen said although he doesn’t foresee a repeat of the 2022 natural gas crisis where companies reaped huge profits from a massive gas price hike, a one-time “windfall tax” on such companies “is a possibility
Summary
Commissioner Dan Jørgensen said although there are no immediate oil and gas supply shortages in the 27-member bloc, there’s pressure on diesel and jet fuel supply as well as “increasing constraints” in global gas markets that are resulting in higher electricity prices. He said the EU’s executive arm is preparing a string of measures designed to help families and businesses weather the huge spike in oil prices that have resulted in about a 70% price hike for gas and 60% for oil in Europe. Closely coordinated action between all EU members is necessary to “avoid fragmented national responses and disruptive signals to the markets,” he said.