EU Energy Ministers to Discuss Supply Risks as Gas Prices Surge Ahead of Winter

European Union energy ministers will meet on Thursday to discuss energy security and rising costs as conflicts in Iran, Ukraine and Yemen disrupt global fuel supplies ahead of the winter heating season.

Fighting has damaged refineries across the Middle East and Russia and disrupted oil and gas shipments through key maritime routes, including the Black Sea, Red Sea and Strait of Hormuz. The disruptions have pushed energy prices higher and increased concerns about the cost of heating homes and operating businesses across Europe.

EU Energy Commissioner Dan Jorgensen warned on Wednesday that the bloc must not underestimate the risks to supply, even though an immediate shortage has not emerged.

“We are in a very serious situation now. It does not look like we have a security of supply issue but I would warn against neglecting that,” Jorgensen told reporters.

He said affordability was an equally urgent concern, noting that energy supplies offered little reassurance to households and companies unable to meet the higher costs.

The European Commission began discussions with European refinery operators on Wednesday to identify ways to increase fuel production. Options include easing some technical specifications to help refineries boost output, although any changes would need to be assessed carefully.

Western powers also agreed this month to accelerate the release of more than 400 million barrels of emergency oil stocks following pressure from the United States. The move is intended to help offset disruptions to global supplies and limit further pressure on prices.

EU ministers are also expected to examine a Commission proposal aimed at reducing electricity bills through changes to taxation and grid fees. One option would be to apply a lower tax rate to electricity than to natural gas, potentially making electricity more affordable for households and businesses.

The discussions come as Europe enters the winter heating season with gas storage levels below those recorded a year earlier. Stocks currently stand at around 75 per cent of available capacity, compared with 83 per cent at the same point last year.

Gas prices have climbed sharply as the conflict in the Middle East has intensified. European wholesale gas prices briefly reached €100 per megawatt-hour on Wednesday, marking their highest level since December 2022, when Europe was struggling with the loss of most Russian pipeline gas supplies.

Prices are now trading at around three times their levels before the war involving Iran began, adding to concerns about the impact on household bills, industrial production and the wider European economy.

Thursday’s meeting will give EU governments an opportunity to assess the risks facing energy markets and consider measures to protect consumers while maintaining reliable supplies through the colder months.