EU energy ministers to tackle soaring fuel prices ahead of winter

EU energy ministers will meet on Thursday to discuss energy security ahead of the winter heating season, as conflicts in Iran, Ukraine and Yemen drive up oil and natural gas prices.

Fighting has damaged refineries across the Middle East and Russia, while disrupting oil and gas shipments through key maritime routes, including the Black Sea, Red Sea and Strait of Hormuz.

“We are in a very serious situation now. It does not look like we have a security of supply issue, but I would warn against neglecting that,” EU Energy Commissioner Dan Jorgensen told reporters on Wednesday. He said affordability was equally urgent, noting that sufficient supplies offered little relief to households and businesses unable to pay for them.

The European Commission began talks with European refineries on Wednesday to explore ways to increase output, including potentially relaxing certain technical specifications.

Western powers also agreed this month to accelerate the release of more than 400 million barrels of emergency oil reserves following pressure from the United States.

EU member states will also discuss a Commission proposal to reduce electricity bills through tax and grid fee reforms, including lowering taxes on electricity relative to natural gas.

The bloc is entering the winter heating season with gas storage levels at just 75% of capacity, down from 83% a year earlier.

European wholesale gas prices briefly reached €100 per megawatt-hour (MWh) on Wednesday, their highest level since December 2022, when Europe was grappling with the loss of most of its Russian pipeline gas supplies. Prices have climbed as the Middle East conflict has intensified and are now trading at around three times their pre-war levels.