The Iran war has raised the price of jet fuel and diesel in Europe more than crude oil

The EU may revive energy crisis measures in 2022 in response to the Iran war

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  • The EU prepares measures to respond to rising energy prices
  • Considering renewing the crisis response​​​​​​from 2022, which included the price of gas
  • EU tells members to prepare for ‘long-term disruption’ in energy markets
  • Jet fuel, diesel provides a large shock in a short period of time

BRUSSELS, March 31 (Reuters) – The European Union is considering renewing energy crisis measures it used in 2022 when Russia cut gas supplies, to address the ongoing disruption of energy markets caused by the Iran conflict, the bloc’s energy chief said on Tuesday.

Speaking after a meeting of EU energy ministers to discuss their response, EU Energy Commissioner Dan Jorgensen said the plans include proposals to reduce tariffs and electricity taxes.

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“We don’t know how long this crisis will last. And since we don’t know how deep it will be, we are preparing different opportunities and opportunities that look like the ones we used under the crisis in 2022,” he said.

The EU introduced a series of emergency measures in 2022, after Russia cut gas supplies following its all-out invasion of Ukraine. They included an EU-wide cap on gas prices, a tax on energy companies’ profits, and an aim to curb gas demand.

Jorgensen said the Iran conflict could cause long-term disruption in energy markets.

“It will not be short, because even if there is peace tomorrow, there will still be consequences, because the energy resources in this region have been destroyed by war,” he told reporters after the meeting of EU ministers.

Europe’s heavy reliance on imported fuel leaves it exposed to the effects of Middle East conflict on global energy prices. European gas prices have risen more than 70% since the US-Israel conflict with Iran began on February 28.

The bloc’s supply of crude oil and natural gas has not been directly affected by the closure of the Strait of Hormuz, as Europe imports much of that energy from Middle Eastern exporters.

JET FUELS SEE AS ​​VERY VISIBLE

Jorgensen said Brussels is more concerned in the short term about Europe’s supply of refined petroleum products such as jet fuel and diesel.

The last shipment of kerosene to pass through the Strait of Hormuz before the closure is due to arrive in Europe around April 10, according to Benedict George, head of European products at Argus Media.

The Iran war has raised the price of jet fuel and diesel in Europe more than crude oil

“There is no real risk of running out of fuel” for the jet, George told Reuters, adding that European countries’ stockpiles could cover three months’ worth of kerosene.

However, “stocks can fall to the point where you have a domestic deficit” or high and volatile prices, he said.

The EU sources about 15% of its kerosene from Middle Eastern suppliers.

In a letter sent ahead of Tuesday’s meeting, Jorgensen called on governments to delay non-emergency cleanup efforts to try to keep the supply of oil products flowing.

Report by Kate Abnett; Edited by Inti Landauro, Susan Fenton, Louise Heavens and Ros Russell

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