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- Around quarter of EU refineries have shut down over past 2 decades, reducing domestic refining capacity by around 10%, while divestments have accelerated across Europe, says Dan Jorgensen
By Aysu Bicer
BRUSSELS (AA) - The EU will work to increase domestic refining capacity and boost fuel production as geopolitical tensions drive up energy prices, European Commissioner for Energy and Housing Dan Jorgensen said Wednesday.
“Once again, due to geopolitical turbulence, Europe faces another energy crisis,” Jorgensen told a press conference in Brussels.
He said crude oil and petroleum product prices had increased significantly worldwide, putting pressure on European households and businesses.
“Fuel bills in the EU are skyrocketing,” he said, adding that the global diesel market is expected to remain tight well into 2027, keeping prices high.
Jorgensen said European refineries had played a vital role in ensuring security of supply, including jet fuel, despite challenging market conditions.
He noted that around a quarter of EU refineries had shut down over the past two decades, reducing domestic refining capacity by around 10%, while divestments had accelerated across Europe.
“But this crisis is a wake-up call: We need to counter this trend and ensure that we have adequate and flexible refining capacity in Europe. Today and for the future,” he said.
Jorgensen stressed that refining capacity was not only a matter of economic competitiveness but also of security, highlighting the need for reliable and affordable fuel supplies for citizens, businesses and defense.
The Commission will continue technical discussions with the sector and reconvene early next year to assess progress, he said.
“We will work to increase outputs from refining assets in Europe. The industry has made some suggestions that we need to assess,” he added.
Jorgensen said the EU would also examine the long-term future of the refining sector as the bloc pursues decarbonization, with a focus on expanding the production of biofuels and e-fuels.
“The production of renewable liquid fuels has already compensated some of the reduction in Europe’s refinery capacity. The potential is significant,” he said.
Aysu Biçer
