EU Warns Diesel Prices Will Stay High in 2027
The European Commission expects the global diesel market to remain tight in 2027, keeping prices elevated, and is working with industry to boost refining capacity.
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Diesel prices across Europe are likely to stay high in 2027, the European Commission warned on Wednesday, as it launched talks with the refining industry to strengthen domestic production and reduce external dependence. Energy and Housing Commissioner Dan Jorgensen said the International Energy Agency expects the global diesel market to remain tight next year, keeping prices elevated.
“This winter will be difficult, it will be hard for our citizens and for the economy in general,” Jorgensen told a press conference in Brussels, according to EFE. He appeared alongside Defence and Space Commissioner Andrius Kubilius after a first strategic dialogue with European refiners to study how to increase output of diesel and aviation kerosene.
Around a quarter of European refineries have closed over the past two decades, reducing EU refining capacity by about 10 percent, Jorgensen noted. While energy markets have shown “remarkable resilience” and Europe has accelerated supply diversification, the new energy crisis is a “wake-up call” about the bloc’s vulnerability, he said.
The Commission will now evaluate industry proposals to raise production from existing facilities and will meet again with the sector early next year. “Ultimately, we need to reduce fuel prices,” Jorgensen stressed, calling it an immediate priority to ease pressure on businesses and citizens.
Beyond the current crisis, Brussels aims to ensure the long-term viability of a strategic industry. “Refining is strategic: diesel and aviation fuel are essential for mobility, for the entire economy and defence,” Jorgensen said. In the longer term, the Commission wants to support the transformation of refineries to align security of supply with EU climate goals, including a shift toward greater production of biofuels and synthetic fuels. Renewable liquid fuels have already partially offset lost traditional refining capacity and have considerable growth potential, he added.
Kubilius highlighted the military dimension of energy security, noting that fuel supply is an essential part of military logistics. “Defence without fuel is impossible,” he said, quoting US General John J. Pershing: “Battles are won with infantry, wars are won with logistics.”
The European Commission will continue meeting with refining industry representatives to develop an action plan for the sector’s transformation.
