NICOSIA — European Commissioner for Energy Dan Jørgensen warned in Nicosia that oil and gas prices in Europe would not return to normal levels in the foreseeable future even if peace were declared tomorrow. The European Commission is preparing measures to help families and businesses cope with the spike in gas and oil prices.

Gas prices in Europe have risen by about 70% since the start of the Iran war, while oil prices have increased by about 60% over the same period. Since the start of the war, the EU's bill for imported fossil fuels has jumped by 14 billion euros.

Jørgensen said there are no immediate oil and gas supply shortages in the 27-member EU bloc, though there is pressure on diesel and jet fuel supply. He noted that global gas markets are under increasing constraints that are resulting in higher electricity prices.

"Closely coordinated action between all EU members is necessary to avoid fragmented national responses and disruptive signals to the markets," Jørgensen said. The EU plans to unveil a toolbox of measures soon that will include mechanisms to decouple gas prices from electricity prices.

The European Commission is considering a tax cut on electricity as suggested by Ursula von der Leyen. "A one-time windfall tax on companies is a possibility," Jørgensen said. He does not foresee a repeat of the 2022 natural gas crisis in which companies reaped huge profits from a massive gas price hike.

The European Commission will simplify and expand opportunities for member states to financially support vulnerable groups and industries under stress. Jørgensen encouraged EU member states to adopt the International Energy Agency's 10-point plan, including working from home, reducing highway speeds, promoting public transport, and increasing car sharing.

The Iran war has disrupted supplies through the Strait of Hormuz. The EU maintains its ban on purchasing Russian gas to reduce dependence on Russia and deprive it of funding for its war in Ukraine.

EU reliance on Russian gas has declined from 45% before Russia's war in Ukraine to 10% currently. Jørgensen said the EU expects to reduce reliance on Russian gas to zero once imports from other suppliers, especially the United States, increase.

The EU is seeking new energy sources from Azerbaijan, Algeria, Canada, and other smaller producers globally. "The EU should never repeat the mistakes of the past allowing Putin to weaponize energy against us and blackmail member states," Jørgensen said. "It would be totally unacceptable for the EU to continue buying energy that would indirectly help finance the terrible war that Putin is conducting in Ukraine."

Some Asian countries are securing Russian oil due to tight global energy supplies. The Philippines and South Korea have received Russian crude oil and naphtha, while Sri Lanka is in talks with Moscow to secure Russian oil. U.S. government waivers allow countries to purchase Russian oil to stabilize global oil prices.