EU considering fuel rationing - Energy Commissioner Jorgensen: It will be a long crisis
The European Union is considering "all options", including imposing fuel rationing and releasing additional oil from strategic reserves, as it prepares for a "long-term" energy shock caused by the war in the Middle East, Energy Commissioner Dan Jorgensen said.
"This will be a long crisis and energy prices will remain high for a very long time," Jorgensen said, warning that for some more "critical" products "we expect the situation to worsen in the coming weeks."
The near-total disruption of shipping in the Strait of Hormuz and attacks on infrastructure in the Persian Gulf have roiled energy markets, driving up prices and raising fears of long-term shortages.
“The rhetoric we are using now is more serious than at the beginning of the crisis,” Jorgensen noted. “Our analysis shows that this is a protracted situation and countries need to make sure they have what they need,” he added. Although the EU “is not yet in a security of supply crisis,” the Commission is drawing up plans to address the “structural and long-term effects” of the conflict, the commissioner stressed.
The EU's warning comes as the energy shock is already having an impact on the global economy, raising fears of higher inflation and slower growth. Governments around the world are drawing up consumer support measures, while some countries are bringing back coal-fired power plants.
Jorgensen said the EU is “preparing for worst-case scenarios,” although it has not yet reached the point of needing to ratio critical products such as jet fuel or diesel. Airlines have expressed particular concern about jet fuel supplies. Asked about the possibility of easing regulations to allow more imports from the U.S., or increasing the blending of ethanol in vehicle fuels, Jorgensen said: “We have not yet modified or changed any of the current rules.”
However, he added that "We are considering all options and it is clear that the more serious the situation becomes, the more we will have to consider legislative means."
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