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Spanish Economy Minister Carlos Cuerpo said Saturday that his
counterparts from Germany, Italy, Portugal and Austria had
signed a letter to the European Commission citing “market
distortions” caused by the price spike.
“The conflict in the Middle East has caused oil prices to rise,
placing a significant burden on the European economy and on
European citizens,” the letter, dated Friday and made public by
Cuerpo in an online post, said.
“It is important to ensure that this burden is distributed
fairly,” it added.
Europe is largely dependent on imported oil and gas, leaving it
vulnerable to external shocks. In 2022, turmoil in energy
markets following Russia’s full-scale invasion of Ukraine pushed
inflation into double digits in many European countries.
At the time, the EU imposed a “solidarity contribution” that
included caps on excess energy profits.
“Given the current market distortions and fiscal constraints,
the European Commission should swiftly develop a similar EU-wide
contribution instrument,” the letter said. “It would also send a
clear message that those who profit from the consequences of the
war must do their part to ease the burden on the general
public.”
Driven largely by higher oil prices, the annual inflation rate
in the 21 countries that use the euro rose to 2.5% in March,
from 1.9% in February.
Iran has blocked most tanker traffic through the Strait of
Hormuz — a chokepoint for about 20% of global oil and gas — in a
move that threatens to stress fuel markets for months.
European Union Energy Commissioner Dan Jorgensen warned this
week that disruption caused by the closure means fuel prices are
unlikely to “go back to normal in a foreseeable future.”
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