Europe Bracing for 'Prolonged Fuel Disruption'

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Europe is calling on its nations to coordinate efforts to ensure sufficient supplies of oil and gas as the war in Iran escalates and the closure of the Strait of Hormuz continues to disrupt global fuel supplies.

Greater Cooperation

The European Commission (EC) is predicting a "prolonged disruption" to fuel supplies and has called on European Union (EU) nations to coordinate efforts to ensure the supply of oil and refined petroleum products.

Travel Less, Work From Home

The Commission is even calling for voluntary belt-tightening measures including asking people to travel less and greater working from home. Speaking to reporters after an emergency meeting of Europe's energy ministers, Commissioner for Energy and Housing Dan Jørgensen explained why the Union must work together on fuel security: "Since the beginning of the conflict in the Middle East, prices in the EU have risen by around 70% for gas and by 60% for oil. In financial terms,  30 days of conflict have already added 14 billion euro (US$16.1 billion) to the Union's fossil fuels import bill. Fourteen billion euros (US$16.1 billion). These numbers paint a very clear picture: As the crisis in the Middle East enters its second month, it is clear that we are facing a very serious situation."

Prolonged Disruption

Even if the Strait of Hormuz opens soon, Europe is bracing itself for longer term disruptions. Jørgensen said: "We should be under no illusion that  the consequences of this crisis for the energy markets will be short-lived. Because they won't. It is therefore extremely important that we take action in unity and in close  coordination. And that we avoid fragmented national responses and disruptive signals to the market. Our measures must be targeted, they must be temporary and avoid worsening supply and demand conditions."

No Immediate Threat

He added: "While there are no immediate oil and gas supply shortages in the EU, we see tightening in certain product markets, notably diesel and jet fuel, as well as increasing constraints in the global gas market and its spill-over effects into electricity prices. This situation threatens to impose further costs on our industries and our households."  Data from Gas Infrastructure Europe (GIE) shows that gas storage levels are at just above 28% in the EU now - a record low - with levels in some countries much lower, such as the Netherlands' at less than 5%, followed by Sweden at just under 10% and Croatia at 15%. Industrial Info reported last month that the Commission was calling on countries to start filling their tanks early for the coming winter. For additional information, see Mar 30, 2026, article - Europe Calls To Fill Gas Storage Early. 

Keep Refineries Running

The EC is proposing that robust monitoring, rapid information-sharing mechanisms and coordination remain essential. It wants any emergency risks or material changes in oil supply and industry conditions - including commercial stocks - to be tracked and notified to the Commission for coordinated responses. It also wants EU countries to "refrain from taking measures that may increase fuel consumption, limit the free flow of petroleum products or disincentivise EU refinery output." In addition, it has asked that "any non-emergency refinery maintenance should be deferred." 

Industrial Info is tracking 110 refineries in Europe - 74 in the EU-27. The call to pause maintenance projects could hit some of 300 maintenance projects worth US$1.4 billion in spending being tracked by Industrial Info. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

More Biofuels & Renewable Energy Efforts

As well as the call to keep refineries running, the Commission said that at the same time, "increasing the uptake of biofuels could help substitute for fossil petroleum products and alleviate pressure on the market." According to Jørgensen, the latest crisis shows that Europe faces a fundamental vulnerability to external energy shocks. "And this is linked to our dependence on imported fossil fuels. This is why this must be the time we finally learn this lesson. This is why this must be the time we finally turn the tide and truly become energy independent. If we are to create conditions for good jobs for EU citizens, for economic security, and security overall, Europe can no longer afford to be exposed to the volatility of the global fossil fuel markets. Homegrown clean energy, electrification, modernised interconnections and energy efficiency: this is the only way forward."

Key Takeaways 

• The European Commission is calling European Union (EU) nations to coordinate efforts to ensure the supply of oil and refined petroleum products.
• Refineries must keep operating and there is a call to pause non-emergency maintenance projects.
• The call to pause maintenance work could hit almost 300 projects worth US$1.4 billion in spending.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).