Due to Donald Trump’s war in Iran and the Islamic Republic’s retaliation in the region, the price of gas for the EU has risen by 70 percent and oil by 60 percent, Energy Commissioner Dan Jørgensen said yesterday. The cost of 30 days of war has been “14 billion euros on the fossil fuel import bill,” Jørgensen said.
THE CONSEQUENCES OF THE ENERGY CRISIS, ACCORDING TO COMMISSIONER JORGENSEN
The commissioner emphasized that the situation on energy markets is “very serious.” There are no immediate risks for the EU’s supply of gas and oil, but problems are beginning to arise for diesel and aviation fuel. “We must not delude ourselves that the consequences of this crisis will be short-lived. They will not be,” Jørgensen warned. “No one knows how long the crisis will be. But it is important to emphasize that it will not be short. Even if there is peace tomorrow, there will be consequences. Because the region’s infrastructure has been damaged by the war and continues to be damaged by the war,” the commissioner added.
MEASURES BY THE EUROPEAN COMMISSION
The European Commission is expected to quickly present a “package” of measures for a coordinated response to the energy crisis, Jørgensen announced. The commissioner called on Energy Ministers to “avoid fragmented national responses and disruptive signals to the markets.” The measures must be “targeted, temporary, and must not worsen supply and demand conditions.” The Commission will offer a “toolbox to protect families and businesses.” But Jørgensen also defended the need to stay the course on the long-term decarbonization strategy, because the EU remains vulnerable to external energy shocks due to dependence on fossil fuels.
PREVENTION AND DEMAND REDUCTION
Before the Energy Council, Jørgensen sent a letter to the ministers of Member States recommending a series of preventive measures. One of the requests is to consider demand reduction measures, with particular attention to the transport sector (teleworking, reducing highway speed limits by at least 10 kilometers, encouraging public transport and car sharing). Member States should also refrain from adopting measures that could increase fuel consumption, limit the free movement of petroleum products, or discourage EU refinery production. Any non-urgent maintenance work at refineries should be postponed. The commissioner also recommended greater use of biofuels to help replace fossil petroleum products and ease pressure on the market.
(Excerpt from the European Mattinale)
