The European Union has cautioned that oil and gas prices are unlikely to return to normal levels anytime soon even if the ongoing conflict involving Iran comes to an immediate end due to sustained pressure on fuel supplies and tight global markets.
Speaking on Tuesday, EU Energy Commissioner Dan Jørgensen said that while there are no immediate shortages across the 27-member bloc, diesel and jet fuel supplies remain strained, alongside growing constraints in global gas markets. These pressures continue to push electricity prices higher across Europe.
Jørgensen stressed that even a swift resolution to the conflict would not quickly stabilize energy costs. He noted that since the war began, Europe has seen gas prices rise by about 70% and oil prices by roughly 60%, with the bloc’s fossil fuel import bill increasing by €14 billion.
To cushion the impact on households and businesses, the EU is preparing a package of support measures.
These include proposals to make it easier for member states to separate gas prices from electricity pricing and the possibility of cutting electricity taxes an idea backed by Ursula von der Leyen.
Jørgensen also indicated that a one-off windfall tax on energy companies remains under consideration, although he does not anticipate a repeat of the extreme conditions seen during the 2022 gas crisis.
He emphasized the need for coordinated action among EU countries to prevent fragmented national responses that could further disrupt markets. Additionally, member states are being encouraged to adopt measures from the International Energy Agency’s 10-point plan, which includes promoting remote work, reducing speed limits, increasing public transport use, and encouraging car-sharing.
The EU’s proposed “toolbox” of measures is expected to be unveiled soon, aimed at easing the burden on vulnerable populations and industries facing mounting energy costs.
