NICOSIA, Cyprus — Oil and gas prices in Europe are unlikely to return to normal levels in the near term, even if the Iran war ends, the European Union’s top energy official said, citing sustained pressure on global fuel markets.
Dan Jørgensen, the European Union’s energy commissioner, said Tuesday that while the 27-member bloc is not facing immediate supply shortages, tightening conditions in global markets are driving up costs, particularly for diesel, jet fuel, and electricity.
“What I find extremely important is to state as clearly as I can, that even if that peace is here tomorrow, still we will not go back to normal in a foreseeable future,” Jørgensen said during a news conference following a meeting of EU energy ministers.
According to Jørgensen, the ongoing conflict has already led to a sharp rise in energy costs, with gas prices increasing by around 70 percent and oil prices by about 60 percent across Europe. The EU’s total bill for imported fossil fuels has also surged by €14 billion since the start of the war.
The European Union is now preparing a set of coordinated measures aimed at helping households and businesses cope with rising energy expenses. Jørgensen stressed the need for unified action among member states to prevent fragmented responses that could further disrupt markets.
The proposed measures, expected to be announced soon, include options to decouple gas prices from electricity pricing, as well as potential tax reductions on electricity—an idea backed by European Commission President Ursula von der Leyen.
Jørgensen also said a one-time “windfall tax” on energy companies could be considered, although he does not anticipate a repeat of the 2022 natural gas crisis when firms recorded significant profits amid soaring prices.
He added that there are “good opportunities” for governments to provide financial support to vulnerable sectors and populations facing “extraordinary stress,” with the European Commission looking to simplify and expand such assistance.
The commissioner further urged EU countries to adopt measures outlined in the International Energy Agency’s 10-point plan, including remote work arrangements, reduced highway speeds, increased use of public transportation, and car-sharing initiatives to cut energy consumption.
Despite the ongoing crisis, Jørgensen reaffirmed the EU’s commitment to phasing out Russian gas imports, a policy designed to reduce reliance on Moscow and limit funding for its war in Ukraine. Dependence on Russian gas has already fallen from 45 percent before the conflict to around 10 percent, with plans to reach zero as alternative supplies increase.
The EU is exploring new energy partnerships with countries including Azerbaijan, Algeria, and Canada, alongside other smaller producers.
Jørgensen warned against repeating past mistakes that allowed Russia to leverage energy as a geopolitical tool, saying it would be “totally unacceptable” for the EU to continue purchasing energy that could indirectly finance the war in Ukraine.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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