EU Commission stepping up coordination to avoid jet fuel shortage
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The European Union (EU) on Wednesday announced a set of policy agendas aimed at easing the energy crisis triggered by the war in the Middle East.
The European Commission presented a toolbox of measures named “AccelerateEU,” designed to help member states manage current pressures and prepare for future disruptions.
In its announcement, the EU’s executive arm said Europe’s energy system has remained resilient despite global market shocks. However, it warned that price spikes and fuel shortages continue to pose risks across the bloc.
EU seeks resilience amid global energy crisis
“This must be a wake-up call and a turning point,” EU Energy Commissioner Dan Jorgensen said at a press conference in Brussels, urging Europe to accelerate its shift away from fossil fuels.
Even if a diplomatic solution to the standoff between Iran and the United States is reached, the effects of the crisis are likely to be felt for years, he said.
The Commission said diversified gas and oil supplies, strategic reserves and expanded LNG import capacity have so far helped ensure security of supply. At the same time, it is proposing a set of actions to strengthen resilience across the bloc, including:
Decrease reliance on oil and gas by reducing taxes on electricity (which could incentivize the uptake of things like heat pumps)
Accelerate the shift to homegrown clean energy to replace oil, gas and fossil transport fuels
Coordinate timing of gas purchases to avoid price hikes, as well as possibly facilitating oil stock releases
A fertiliser action plan to diversify supply sources and support domestic production
Loosen oil and fertilizer subsidy rules, allowing states to subsidize up to 50% of the price increase since the war began
One immediate concern is the availability of jet fuel ahead of the summer travel season. The EU imports around 40% of its jet fuel and about half of those imports pass through the Strait of Hormuz.
“The availability and operational capacity of Europe’s oil refining sector must be maximised to meet current demand, especially for jet fuel,” a Commission guidance document sent to EU capitals said.
The Commission is planning to map transport fuel supplies, coordinate alternative sourcing of jet fuel and propose measures to improve distribution across the bloc.
Commissioner Transport and Tourism Apostolos Tzitzikostas on Tuesday downplayed concerns about a potential shortage, saying there were no signs of widespread flight cancellations in the coming months. He added that Brussels was considering increasing imports from the United States and requiring member states to hold minimum jet fuel reserves.
The EU has spent an additional €24 billion on energy imports since the start of the Iran war due to rising prices. “These higher costs come without receiving a single extra molecule of energy,” the Commission said.
