EU Expands Joint Energy Purchasing Amid Surge in Gas and Diesel Prices

The European Commission plans to expand joint energy purchasing across the EU as gas and diesel prices surge. Commission President Ursula von der Leyen announced the initiative ahead of an EU leaders summit scheduled for mid-October. A new working group will be established to aggregate energy demand, building on a mechanism created during the 2022 energy crisis. The goal is to shift from connecting buyers with sellers to centralised contracting and aggregated demand.

Von der Leyen reported that gas prices have risen 140 percent since late February, while diesel prices have doubled. The EU has faced an additional EUR100 billion in fossil fuel import costs since the start of the conflict. The Commission will also launch a strategic dialogue on European refineries to lower costs and enhance energy security, led by Commissioners Dan Jorgensen and Andrius Kubilius.

The measures follow a G7 agreement to release 100 million barrels of diesel and crude oil to stabilise global prices. Von der Leyen ruled out broad-based financial support for households, instead advocating for targeted assistance for those most affected. She highlighted the need for faster electrification to reduce reliance on imported fossil fuels, aiming to double electricity's share in EU final energy consumption by 2040, which could cut annual fossil fuel import costs by about EUR260 billion.