Europe loses €1.4 billion to gas price spikes in first week since start of Iran conflict
Europe loses €1.4 billion to gas price spikes in first week since start of Iran conflict
New analysis by 350.org shows that Europe effectively paid around €1.4 billion extra for gas in the first week following price spikes triggered by the war against Iran, highlighting the financial cost and risks of the continent’s continued dependence on fossil fuels.
Gas prices in Europe rose sharply after the conflict began, jumping from around €30 per megawatt hour (MWh) to roughly €50 per MWh and higher as markets reacted to instability affecting global energy supplies. Campaigners say the figure shows how geopolitical crises linked to fossil fuels rapidly translate into higher costs for households and businesses across Europe. If this crisis continues, fossil fuel prices will likely rise even higher.
Andreas Sieber: Head of Policy at 350.org
“This is not an energy crisis, this is a fossil fuel crisis. In the first week alone since the Iran war, Europe has lost 1.4 billion Euros to higher gas prices. Instead of losing billions to fossil fuel price spikes, Europe needs to accelerate the energy transition that will lead to lower bills and strengthen energy security.
Continued instability will lead to further volatility in global fuel markets, meaning households will face additional energy price pressures in the months ahead unless structural changes are made. Then the sun and the wind don’t send bills, they also don’t have to travel through the Strait of Hormuz.”
To put the scale of the loss into perspective, €1.4 billion would be enough to install solar power for at least 500,000 homes across Europe, permanently lowering energy bills and reducing exposure to volatile fossil fuel markets.
“Oil and gas companies profit from crisis-driven price spikes, while households and other businesses absorb higher prices. A windfall tax on carbon majors could protect families now while funding simple renewable solutions, from balcony solar to electric bikes, that lower bills permanently and give people control over their own energy.” Andreas Sieber
ENDS
Notes for Editors
- The European Union consumes approximately 330–350 billion cubic metres (bcm) of gas each year
- This equals roughly 3,300–3,500 terawatt hours (TWh) of energy, and around 65–70 TWh of gas consumption every week.
- The price increase per MWh of on average €20 in the first week results in a total estimated €1.4 billion additional cost in a single week.