Airlines cut flights and fuel prices surge as the EU falls back on subsidies and long-term plans without reversing course on its misguided energy policies.
Airlines cut flights and fuel prices surge as the EU falls back on subsidies and long-term plans without reversing course on its misguided energy policies.
The European Commission is set to unveil an emergency energy package on Wednesday, in an arguably late attempt to confront a rapidly evolving energy crisis. With the EU left vulnerable by a misguided green transition, the Commission is now forced to reckon with geopolitical and economic realities.
The crisis is hitting businesses and citizens hard. Airlines are already cutting flights, fuel costs are rising sharply, and supplies are tightening. The problem is clear: Europe depends heavily on imported fuel that passes through the Strait of Hormuz, one of the world’s most unstable shipping routes.
About 40% of the EU’s jet fuel and diesel moves through the strait. Analysts warn stocks could run as low as six weeks.
The pressure is already showing. Germany’s flagship carrier, Lufthansa Group, plans to cut 20,000 short-haul flights by October and shut its regional arm Cityline to conserve fuel. The group says kerosene prices have doubled since the start of the Iran conflict.
The Commission’s plan offers limited relief. Draft proposals rely on steps already allowed under EU rules—subsidies to ease energy bills, support for higher fuel costs, and some tax cuts. Most of the burden will fall on national governments.
There is little sign of a shift in direction. The plan continues to prioritise cleaner energy, with a focus on electrification, investment, and reducing demand.
Lithuania’s energy minister, Žygimantas Vaičiūnas, said countries that rely on fossil fuels cannot switch overnight, but have little choice but to move that way.
Officials are divided over how much the measures will help. One national official said expanded subsidies “may give some comfort to some but is unlikely to make a dent.” Wealthier countries fear unfair advantages, while others lack the funds to respond.
The messaging has also been inconsistent. Officials urge people to cut travel, yet insist there is no fuel crisis. Key parts of the plan, including measures on jet fuel, are still not fully worked out.
Some governments have already acted alone. The Netherlands has released extra oil reserves rather than wait for a joint EU response.
The weakness goes beyond the current crisis. Moving away from Russian gas reduced one risk, but increased reliance on global fuel markets and vulnerable shipping routes. That leaves Europe exposed when supplies are disrupted.
Fixing that will take years and significant investment—neither of which can be delivered quickly.
With the conflict in the Gulf ongoing, disruption is likely to continue. The Commission is presenting a plan, but the situation is moving faster than its response.
