03 April 2026

EU AND MEMBER STATES SCRAMBLE TO CURB OIL DEMAND

European Commissioner Dan Jørgensen has urged EU capitals to outline measures to reduce oil and gas use, particularly in transport, as EU Member States brace for further supply disruptions in the Strait of Hormuz amid the armed conflict in the Middle East. In a letter dated 30 March 2026, Jørgensen asks national energy ministers to report on current market capacity and propose practical actions to curb demand. Energy ministers met this week for an emergency session to address a global shortage of 11 million barrels of oil and over 300 million cubic meters of LNG daily. In his letter, Commissioner Jørgensen suggests EU Member States to implement a number of measures, including postponing the maintenance of oil refineries where possible to maintain production, considering biofuel as an alternative, and temporarily lowering speed limits on highways.

Transport & Environment has entered the public debate on energy shortages with a call for a temporary windfall tax on fuel producers, arguing that the current crisis is generating substantial excess profits for oil companies. According to its estimates, the sector could see up to €24 billion in additional profits by the end of 2026, with around €1.3 billion already accrued from road transport fuels since the conflict began.

Transport & Environment points to the precedent set during the 2022 energy crisis, when the EU introduced a 33% levy on excess profits in the fossil fuel sector. Although that measure expired in 2024, the underlying legal framework remains in place and could be reactivated. The organisation argues that such revenues should be channelled into mitigating the impact of rising energy prices and strengthening the EU’s resilience.