A consensus on a petrol price cap eludes EU states for the time being

The European Union will disclose measures next week to launch collective gas purchasing within months and establish an alternative gas price benchmark, but a summit of EU members on Wednesday left it unclear whether the package will include a gas price cap.

As Europe prepares for a winter of scarce Russian gas, a crisis in the cost of living, and the looming risk of a recession, the 27-nation EU is pondering its next move to contain rising energy prices and protect citizens from soaring bills.

EU energy commissioner Kadri Simson indicated, following a meeting of EU energy ministers in Prague, that the European Commission would propose measures to build an alternative EU gas pricing baseline and promptly commence joint gas purchasing among EU nations.

Simson indicated, however, that it remained unclear whether there was sufficient support among countries for a price restriction on gas used for power generation to be added to the Oct. 18 package - a policy desired by various nations.

She added that the package will detail how a "temporary mechanism" to regulate gas prices may function, as well as the risks it would entail.

The Czech Minister of Industry, Jozef Sikela, stated that ministers agreed that cooperative gas purchasing should commence by next summer and that the Czech Republic, which currently holds the rotating EU presidency, will convene an extraordinary meeting of ministers in November to ratify the next measures.

Sikela added, "I am certain that today's summit has helped to reconcile conflicting perspectives among member nations."

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With gas prices around 90% higher than a year earlier, the majority of EU countries have voiced a desire for a gas price cap, but have had trouble agreeing on its design - whether it be a price restriction on all gas, pipeline gas, or only power-generating gas.

In June, Spain and Portugal put a limit on the price of gas used in power generation, which contributed to the reduction of local electricity costs. As a result of the increase in Spain's gas consumption, support has emerged among other EU members to implement the measure on a larger scale, despite worries that it may increase gas demand across the bloc.

The outcome of the meeting was consistent with many of the measures recommended in a proposal by Germany and the Netherlands - who are concerned that high gas price ceilings will make it difficult for Europe to attract supply - while avoiding the cap that 15 other EU nations have urged Brussels to adopt.

The German and Dutch plan, acquired by Reuters, backed an alternative benchmark gas price, pooled gas purchase, and negotiated lower rates with non-Russian suppliers, in addition to stronger gas conservation targets for this winter.

Energy Minister Terje Aasland of Norway, who attended Wednesday's meeting along with other European non-EU members, indicated that his country "does not advocate" a gasoline price cap.

Following its invasion of Ukraine, Russia curtailed its gas exports to Europe, which it attributed on Western sanctions imposed in response to the conflict.

EU states have already adopted emergency energy windfall profit levies, gas storage filling penalties, and power consumption limitations to offset the surge in energy prices.

The statement by Germany that it would spend up to 200 billion euros to shield its homes and businesses from high energy costs has increased the pressure to agree to additional EU-wide measures, with other countries objecting to the unequal distribution of national support.