By Wester van Gaal

 

AMSTERDAM, 01 April. - (ANA) - Triggered by the US?Israeli attack in February, Iran’s closure of the Strait of Hormuz removed roughly a fifth of global oil and liquid gas supplies from the market. 

 

Benchmark oil prices have risen above €115 and EU gas prices up 70 percent compared with pre?war levels. And Shell CEO Wael Sawan warned last week that physical oil shortages could already hit Europe in April.

 

EU energy ministers will meet on Tuesday (31 March) to coordinate a bloc-wide response and avoid a patchwork of national measures.

 

In a communique last week the EU Commission called on countries to “not unduly increase aggregate demand for gas and oil.”

 

So far, member states are acting on their own with tax cuts, price controls, targeted subsidies and market rules. The result is a cocktail of policies, some of which help lower demand, while most others risk pushing it higher, even as supply shortages loom.

 

Here’s how the biggest economies are responding.

 

 

 

 

Europe’s largest economy has so far avoided large fiscal subsidies and instead opted for market regulation and pricing checks. Last week, the Bundestag approved a ‘fuel price package’ that limits petrol stations to one price increase per day while decreases are allowed at any time. 

 

The plan is based on a model already in place in Austria. The aim is to curb speculative price spikes rather than directly subsidise consumption. The package will come into force in April, and violations are punishable by €100,000. 

 

Berlin has also tightened competition law. Under these rules, fuel companies are now required to justify price increases. And federal officers can intervene more easily in cases of excessive pricing. 

 

Other plans are still being discussed. One proposal from the Social Democrats (the junior partner to the conservative CDU in the federal government coalition) would cap energy company profits and set a price ceiling at gas stations. Other potential measures include commuter tax relief and reductions in the carbon tax.

 

Germany’s mid- to long-term policy direction is less clear.

 

Energy minister Katherina Reiche, speaking at an industry event last week, called Angela Merkel’s nuclear phaseout a mistake and is prioritising gas imports over renewables.

 

Recent announcements include scrapping the gas-boiler phaseout, cutting rooftop solar subsidies, expanding gas power capacity, and deprioritising renewable grid connections.

 

 

 

 

Finance minister Roland Lescure has explicitly ruled out fuel tax cuts for the general public, saying these would drive up demand.

 

Instead, Paris has proposed a temporary €70m emergency plan limited to April, which specifically targets sectors most exposed to oil and gas costs: road transport, agriculture and fishing.   - (ANA) -

 

AB/ANA/01 April 2026 - - -