European gas prices surged above €100 per megawatt-hour on Wednesday for the first time since 2022, as last-minute panic-buying to fill reserves compounded supply pressures tied to the Middle East conflict.
EU energy ministers gathered in Luxembourg on Thursday to address the crisis, ruling out calls for citizens to reduce power use. Twelve member states, including Germany, France, and Italy, announced they would release 42.6 million barrels of oil from strategic reserves by the end of January 2027, with nearly half—20.5 million barrels—being diesel. The move follows a G7 pledge earlier this month to stabilize fuel markets by freeing up to 100 million barrels of oil and diesel over four months.
Energy Commissioner Dan Jørgensen confirmed the EU’s commitment to accelerating the release, stating that while supply security was not at immediate risk, high prices still burdened households. “If you cannot pay your gas bill, it does not matter how much gas is available,” he said. The EU’s oil import bill rose by 55.8% in the second quarter of 2026, with petroleum accounting for 95% of the increase, according to Eurostat data.
Ministers also discussed temporary measures, with Jørgensen noting that targeted subsidies for fossil fuels could be an option if member states deemed them necessary. He emphasized that such steps should be short-term and paired with long-term solutions like heat pumps and electric vehicles. Diesel prices have exceeded €2.30 per liter in several EU countries, prompting urgent action ahead of winter.
France will begin releasing its share—10 million barrels of diesel—next week, while other nations coordinate their contributions under the G7 framework. The EU has reiterated that storage levels, though below the 80% November target, remain sufficient to avoid shortages. However, the focus remains on easing the financial strain on consumers as energy costs continue to climb.
