Considering the market volatility stemming from the conflict in the Middle East and the closure of the Strait of Hormuz, the European Commission is calling on Member States to make timely and coordinated preparations to secure the supply of oil and refined petroleum products in the EU.
The European Union is well prepared, thanks to the obligation on member states to maintain oil stocks and to have contingency plans in response to security of supply incidents. EU member states are also contributing – for approximately 20% – to the release of over 400 million barrels of emergency oil stocks coordinated by the International Energy Agency (IEA).
Commissioner for Energy and Housing Dan Jørgensen (pictured) said: “The European Union’s security of supply remains guaranteed. But we must be ready for a potentially prolonged disruption of international energy trade. This is why we need to act already now. And we need to act together, as a true Union. It is only by working together that we can be stronger and we can protect our citizens and businesses more effectively.”
In a letter addressed to all EU energy ministers, the Commissioner urged the member states to make full use of the meetings under the Oil Coordination Group and Energy Union Task Force Security to ensure good coordination, as well as to consider the promotion of demand saving measures, with particular attention to the transport sector, as advised by the IEA in its 10-points plan to cut oil use.
Robust monitoring, rapid information-sharing mechanisms and coordination remain essential. Any emergency risks or material changes in oil supply and industry conditions, including commercial stocks, should be tracked and notified to the Commission to ensure continuous assessment and coordinated action.
In the same spirit, Member States should refrain from taking measures that may increase fuel consumption, limit the free flow of petroleum products or disincentivize EU refinery output. They should also consult with their neighbouring Member States and the Commission to preserve EU-wide coherence and the functioning of the internal market.
To safeguard the availability of petroleum products on the EU market, any non-emergency refinery maintenance should be deferred. At the same time, increasing the uptake of biofuels could help substitute for fossil petroleum products and alleviate pressure on the market.
