Are we running out of diesel and jet fuel? EU Commissioner on the tense situation

EU Energy Commissioner Dan Joergensen warned on Tuesday that the effects of the crisis in the Middle East would not be short-lived. Although there are no immediate shortages of crude oil and natural gas in the EU, we are observing restrictions on the diesel and aviation fuel markets, he emphasized.

According to Joergensen, 30 days of conflict have already increased EU spending on fossil fuel imports by EUR 14 billion.

– As the crisis in the Middle East enters its second month, it is becoming clear that we are facing a very serious situation. Although there are no immediate shortages of oil and natural gas in the EU, we are observing restrictions on the market for some products, especially diesel and jet fuel, Joergensen said after a meeting of EU energy ministers.

He added that there are growing restrictions on global gas markets and their impact on electricity prices.

“We shouldn't delude ourselves.” A serious warning from the EU

At an online meeting on Tuesday, the heads of ministries responsible for energy exchanged information on solutions introduced at the national level. Many countries, including Poland, decided to introduce a ceiling on fuel prices. The ministers also discussed common solutions, which will soon be presented by the European Commission.

Joergensen announced that a package of solutions at the EU level called the “toolbox” will include, among others: reducing taxes on electricity and fees for its transmission and distribution. The Commissioner added that the EC will also want to promote the conclusion of long-term contracts in the energy sector, which in the long run are intended to help offset the impact of high gas prices on electricity prices and support investments in renewable energy sources.

We should not delude ourselves that the consequences of this crisis on energy markets will be short-lived, because they will not be, he said.

Fragmented state action could make the situation worse

As the Commissioner emphasized, it is important for member states to act together and coordinate their actions. – Let us also avoid fragmented reactions at the national level and signals that disrupt markets – he emphasized.

– Our resources must be targetedmust be temporary and cannot worsen supply and demand conditions, he emphasized.

However, he did not want to comment on fuel price controls implemented by individual Member States. “There is no one-size-fits-all solution,” he said. – It is also clear that we need to help vulnerable groups. Having said that, I would add that we are in a situation that may worsen and in which a reduction in demand is indeed necessary. I encourage Member States to take this into account when applying various crisis measures, he noted.

The war in the Middle East is driving up prices

When asked how to counteract the increase in demand for fuels, he pointed to the 10-point plan of the International Energy Agency (IEA). He recommends, among others: working from home, introducing speed limits on motorways of at least 10 km/h, supporting public transport and focusing on the so-called car sharing.

Joergensen emphasized that the current situation is different from the crisis of 2022, which was a consequence of Russia's full-scale aggression against Ukraine. The crisis there – as he pointed out – concerned gas supplies. “The situation is different and in many ways the impact may be more complex than in 2022 because we are so dependent on rising prices on global markets and we have a more diverse range of products affected,” said the Energy Commissioner.

He added that Europe is much better prepared today than in 2022, because since then it has managed to implement many renewable energy projects, which are a source of cheap and own energy in the system. He called on member states to speed up the implementation of projects that are already nearing completion.

From Brussels Magdalena Cedro (PAP)

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