EU Weighs Gas Price Cap to Tackle Energy Costs

The European Union is considering subsidizing or capping natural gas prices to reduce energy expenses, according to a EU spokesperson. Emergency oil stockpiles are full, and coordinated measures with the IEA are prepared. The EU’s oil coordination group will discuss IEA's pending recommendation on oil stock release.

The European Union is considering new measures to manage soaring energy costs by either subsidizing or capping the price of natural gas, according to a statement made by European Commission spokesperson Anna-Kaisa Itkonen on Wednesday.

The EU is also prepared to coordinate actions with members of the International Energy Agency (IEA), given that their emergency oil reserves remain full. This move underscores the bloc's readiness to act swiftly to stabilize energy markets.

The EU's oil coordination group is scheduled to meet on Thursday to discuss the IEA's guidance on potentially releasing emergency oil stocks, a recommendation expected later on Wednesday, Itkonen informed reporters during her daily press briefing.

(With inputs from agencies.)