EU warns of long energy disruptions due to war in Iran
EU urges preparation for prolonged energy disruptions due to war in Iran (photo: Getty Images)
European Union governments must prepare for prolonged disruptions in energy markets due to the war between the United States and Israel against Iran, Reuters reports.
On March 30, European Union Energy Commissioner Dan Jørgensen sent a letter to the energy ministries of the bloc's member states, in which he encouraged them to "make timely preparations in anticipation of a potentially prolonged disruption."
As Reuters writes, Europe's heavy reliance on imported fuel means the continent is highly vulnerable to the impact of the Middle East conflict on global energy prices.
European gas prices have risen by more than 70% since the start of the war on February 28.
Although supplies of crude oil and natural gas have not been directly affected by the closure of the Strait of Hormuz, Brussels is particularly concerned in the short term about supplies of petroleum products — jet fuel and diesel.
The letter states that governments should avoid measures that increase fuel consumption, restrict trade in petroleum products, or discourage production at European refineries.
"Member states are encouraged to defer any non-emergency refinery maintenance," the letter says.
Fuel price increases
Due to events in the Middle East, fuel problems have begun in Europe. Drivers are not only forced to pay more, but also cannot fill a full tank due to limits introduced at gas stations. Central Europe has been hit the hardest by the crisis.
Governments of some countries are trying to stop panic and fuel tourism by introducing strict daily limits.
Last week, Germany also approved changes to legislation aimed at curbing the sharp rise in fuel prices caused by the war in Iran.
Gas stations are now allowed to raise prices only once per day — at 12:00 local time — while fuel prices can be lowered at any time. Violations of these rules are punishable by fines of up to 100,000 euros.
In Ukraine, gasoline and diesel prices at major gas stations remain stable. However, a sharp increase in prices has been recorded in the automotive gas segment at one of the leading networks.
