European Commission vows to examine gas price cap by September: Italy
As leaders of the European Union agreed on an embargo on Russian oil imports that will take effect near the end of the year, the Italian initiative to impose a price cap on Russian gas may be considered.
The European Commission has promised to study the Italian initiative to impose a price cap on Russian gas purchases by September so that it can be discussed at the EU leaders' summit in October, Italy’s Prime Minister Mario Draghi said on Friday.
At a press conference, Draghi stated that EU leaders had rejected Italy's proposal to hold an emergency energy summit in July.
The prime minister was informed of the need to conduct a study, which will be the subject of discussion.
Furthermore, the Italian Prime Minister emphasized that European leaders agreed on the gravity of the energy crisis and shared a commitment to finding new suppliers and stockpiling.
Rome proposed capping the price of fossil fuels at 80-90 euros per megawatt-hour as per local media.
Draghi tersely stated that Europe has a market right to limit gas prices as a consumer, but it does not use it out of fear that Russia will reduce supplies further in response.
"But it has already happened," he concluded.
The high cost of fuel reflects the high prices that Europeans face. According to a Greenpeace report, oil companies selling diesel and gasoline in Europe have made more than $3 billion in profits since the war in Ukraine began.
It is worth noting that the European Union buys the majority of its energy supplies from Russia, and experts have warned that cutting off the supply may have disastrous consequences.