European Commission may temporarily limit gas prices in EU

By Alimat Aliyeva

Brussels is considering the possibility of temporarily limiting gas prices in the European Union (EU), which have recently reached record levels, Azernews reports.

According to sources, natural gas prices in Europe hit their highest levels in more than two years this week, partly due to low temperatures and a lack of wind, which hindered energy production from renewable sources. Gas prices in Europe are currently about three to four times higher than in the United States, creating significant challenges for European companies, the newspaper reports.

The European Commission is exploring the option of price restrictions as part of discussions surrounding a policy document set to be presented in March. This document is expected to propose measures to support EU heavy industry, among other initiatives. According to the newspaper, European businesses are facing numerous difficulties, including the effects of trade measures imposed during the administration of former U.S. President Donald Trump. Negotiations on price-capping mechanisms are still in the early stages and have already provoked pushback from industry groups, who caution that such measures could undermine confidence in the European market.

Additionally, one European diplomat noted that some EU member states are likely to "reluctantly" agree to impose price restrictions. Germany and the Netherlands, for example, were among the countries that opposed previous price limits, the newspaper recalls. These divisions within the EU highlight the complex balance between supporting businesses and ensuring a stable energy market.

The debate over gas prices also reflects the broader energy crisis in Europe, exacerbated by the war in Ukraine and its impact on global energy supplies. In the longer term, the EU is exploring alternative energy strategies to reduce dependency on Russian energy, including investments in renewable energy and nuclear power.