No quick reset for oil, gas prices even after war ends? EU issues warning

European Union energy commissioner Dan Jorgensen warned that amid the ongoing Iran war, oil and gas prices in Europe are unlikely to return to normal levels anytime soon, even if peace were declared tomorrow.Skyrocketing energy costs have pushed gas prices up by about 70% and oil prices by 60% in Europe since the conflict began. “What I find extremely important is to state as clearly as I can, that even if that peace is here tomorrow, still we will not go back to normal in a foreseeable future,” Jorgensen said during a news conference following a meeting of EU energy ministers.He said that while there are currently no immediate shortages of oil or gas in the 27-member bloc, pressure on diesel and jet fuel supplies in global gas markets is driving up electricity costs, according to news agency Associated Press. The EU’s fossil fuel import bill has surged by 14 billion euros since the start of the war.Jorgensen outlined that the EU’s executive arm is preparing a range of measures to help families and businesses cope with the high energy prices.The upcoming measures will include ways for states to decouple gas prices from electricity prices and a tax cut on electricity, as suggested by Commission President Ursula von der Leyen.Although a repeat of the 2022 natural gas crisis is unlikely, the commissioner did not rule out a one-time “windfall tax” on companies that benefit disproportionately from the high prices. He emphasized coordinated action among all EU members to avoid fragmented national responses that could destabilize markets.Jorgensen also encouraged EU states to consider the International Energy Agency’s 10-point plan, which includes measures such as reducing highway speeds, increasing public transport use, and encouraging car sharing.The commissioner reaffirmed the EU’s commitment to the ban on Russian gas, which has reduced reliance from 45% before the Ukraine war to just 10% now and highlighted efforts to source energy from the US, Azerbaijan, Algeria, Canada and smaller global producers. He stressed that Europe must not repeat past mistakes that allowed energy to be used as a weapon against member states.