High fuel prices are returning as a political problem for Europe’s national governments, as the energy crisis translates into a bill of more than €100 billion for the EU. This is the additional cost of imports since the start of the war in Iran, and member states have not secured a single extra cargo of natural gas or oil in return.
The pressure is already being felt at the pumps. In some European countries, consumers are paying almost 50% more for fuel, with prices even exceeding $11 a gallon following the closure of the Strait of Hormuz. In peacetime, this critical waterway carried around a fifth of global oil trade.
Despite the highly tense geopolitical climate, the European Commission does not foresee any problems with fuel supply this winter. Costs, however, are expected to remain exceptionally high, with oil and gas prices weighing on households, transport and businesses.
Energy Commissioner Dan Jørgensen warned yesterday that the winter would be a difficult one, noting that Brussels is considering measures to contain the cost of transport fuel. He also pointed out that, even under normal conditions, around 50 million Europeans are unable to heat their homes adequately. This year’s situation, he stressed, threatens to widen energy poverty and increase the pressure on European industry.
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