French President Macron called on the European Union to temporarily ease certain rules governing the fuel sector in response to problems with Europe’s energy supply. Macron said that relaxing regulations on kerosene and diesel in particular could increase refinery output by 5% to 20%.
Europe’s energy dependence under debate
Macron said such a step would help Europe reduce its oil imports and strengthen its production capacity. Calling for joint action across Europe in response to energy supply problems, Macron said Europe’s dependence on the Middle East for energy had left it vulnerable to the current crisis.
According to Macron, the Middle East accounts for 36% of Europe’s kerosene imports and 18% of its diesel imports. The Strait of Hormuz has also been almost completely closed since March, causing a crisis in energy markets.
Diesel prices in France approach €2.41 per litre
Diesel prices in France approached a new record of €2.41 per litre. Actions by business groups hit hardest by rising fuel prices are continuing.
Tensions in the Strait of Hormuz, at the entrance to the Persian Gulf, have affected the transport of oil and liquefied natural gas from the Middle East to global markets via the Gulf of Oman and the Indian Ocean. This situation has caused a crisis in energy markets.
The French government launched aid programs for sectors most affected by rising fuel prices, but the support was not considered sufficient.