EUROPE HAS DECIDED TO LIFT RESTRICTIONS ON GAS PRICES CAPS

The EU's gas price cap, introduced in 2022, will expire on Friday, January 31. The decision to lift the fuel price cap was reported by Reuters.

According to the publication, the EU authorities are ready to extend the restrictions if gas prices rise to an unusually high level, against the backdrop of Russia's reduction in gas supplies following the introduction of sanctions. The cap was supposed to come into force if gas prices in Europe reached €180 per megawatt hour, a level that the EU benchmark price has not reached since the start of the European energy crisis in 2022, when it topped €300 per megawatt hour. authors note.

"Fortunately, we have never again been in a situation where we have to find out whether this instrument is effective or not," an EU diplomat said.

EU countries and industry were divided over lifting the restrictions, with Germany concerned that the measure could disrupt energy markets or reduce Europe's ability to attract gas supplies in highly competitive global markets.

Italy, however, wanted the EU to keep the price cap and change it to lower prices. Industry association Eurogas has advocated phasing out the emergency measures introduced during the energy crisis.

European Commission (EC) President Ursula von der Leyen said that Western countries have paid dearly for the opportunity to free themselves from Russian energy resources. She noted that after rejecting energy resources from Russia, a number of households and companies have faced “skyrocketing electricity costs.”

Because of this, the automotive and chemical industries are on the verge of closure, the EC President said.