EU warns diesel prices could stay high into 2027 as supply stays tight
EU Energy Commissioner Dan Jorgensen said tight global diesel supply is expected to last into late 2027, keeping prices elevated. He urged a dialogue with European refiners as capacity shrinks.
The European Union has warned that diesel prices are likely to remain high. European Commission Energy Commissioner Dan Jorgensen said the Commission expects tight supply in the global diesel market to last until later in 2027, which would keep prices elevated.
Jorgensen made the remarks to reporters in Brussels after a meeting with EU refinery representatives. He said Europe is again facing an energy crisis because of geopolitical tensions. Crude oil and oil product prices have risen sharply worldwide, in a pattern similar to the period when the Russia-Ukraine war began, he said. Higher fuel bills are putting pressure on households and businesses across the EU.
Europe's refining capacity shrinks
According to figures Jorgensen gave, about a quarter of the EU's refineries have closed over the past 20 years, and refining capacity within the bloc has fallen by roughly 10 percent. The Commission has therefore started a dialogue with refiners in Europe. Jorgensen said investment is leaving the sector at a faster pace and that Europe needs sufficient and flexible refining capacity both now and in the future.
The talks will continue at a technical level, and the parties will meet again early next year to assess progress. Work is under way to increase refinery output. Jorgensen also said refiners and new entrants to the sector should produce more biofuels and e-fuels.
A hard winter ahead
Jorgensen said he does not expect a supply security problem at present, but added that this does not solve the problem of fuel affordability. For those who cannot afford to buy fuel or heat their homes, the availability of fuel on the market makes little difference, he said. He added that this winter will be hard for citizens and the economy.
Reminding that the EU's long-term goal is to move away from fossil fuels and become carbon neutral by 2050, Jorgensen said a balance must be struck between supporting refiners in the short term and that transition. Temporary and targeted easing of some technical requirements could be considered, he said, but steps must be checked to ensure they work and do not create new problems.
This article was compiled with the help of AI from information published by Dünya.
