EU energy ministers to tackle surging fuel prices in urgent talks

With Europe heading into the winter heating season and energy markets jolted by fresh geopolitical turmoil, EU energy ministers are set to gather to weigh how to protect supply and contain costs as wars in Iran, Ukraine and Yemen drive oil and natural gas prices sharply higher.

Fighting has already taken a direct toll on the energy system, damaging refineries across the Middle East and Russia and disrupting oil and gas movements through key maritime corridors, including the Black Sea, the Red Sea and the 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.

Jorgensen stressed that affordability must be treated with the same urgency, saying that ample supplies offer little relief if households and businesses cannot pay for them.

As part of the response, the Commission began talks with European refineries yesterday on options to lift output, including the potential easing of some technical specifications to help increase production.

Beyond Europe, Western ‌powers also agreed this month to speed up the release of more than 400 ⁠million barrels ‌of emergency oil stocks, a move taken after pressure from the United States.

EU countries will also examine a Commission proposal aimed at lowering electricity bills through changes to taxes and grid fees — for example, by applying a lower tax rate to electricity than to natural gas.

The deliberations come as the EU enters the winter heating period with gas stocks ⁠at only 75% of available storage , down from 83% at the same time last year.

In a sign of mounting strain, European wholesale gas prices briefly hit €100/MWh, the first time since December 2022 — a period when the continent was still absorbing the shock of losing most Russian pipeline gas supplies.

Prices have climbed as the Middle East conflict has intensified and ‌are now trading at roughly three times pre-Iran war levels.