EU refinery talks open as Brussels warns diesel will stay tight until 2027

Refiners and Brussels open talks

The European Commission held the first meeting of its dialogue with the European refining sector in Brussels on 28 October, and commissioners used the press conference that followed to set out the stakes. Energy Commissioner Dan Jorgensen said refining is strategic and that diesel and jet fuel are essential for mobility, the economy and defence. He said the EU expects a difficult winter for its citizens and businesses, with fuel costs rising steeply. The Commission will work with the industry to raise output from European refineries, and the dialogue will meet again early in 2027 to review progress.

Diesel market to stay tight

Jorgensen said the Commission expects the global diesel market to remain tight until 2027, a view he attributed to the International Energy Agency, and that this will keep prices high. He pointed to the market's resilience over recent months and said refiners had played a vital role by producing the fuels the market needs, including jet fuel. The Commission will assess industry proposals, but Brussels is not guaranteeing that output increases will automatically bring prices down. Jorgensen said the immediate goal is to ease pressure on companies and households in the short term, while the longer-term aim is to lower energy prices structurally.

Closures and lost capacity

Jorgensen said about 25% of EU refineries have closed over the past two decades, cutting domestic refining capacity by roughly 10%. He described the current crisis as a warning and said divestments have accelerated in Europe. In his view the problem is one of security as well as competitiveness, because dependencies are dangerous. He said the EU must keep adequate and flexible refining capacity both today and in the future.

Share of EU refineries closed25%

Reduction in domestic refining capacity10%

Share of EU refineries closed

25 %

Reduction in domestic refining capacity

10 %

Data from the article text

Defence needs fuel

Defence Commissioner Andrius Kubilius told the same meeting that defence is impossible without fuel and that traditional fossil fuels will still be needed for defence for many years. Citing NATO experts, he said the alliance's force model implies moving and sustaining 100,000 soldiers in the first ten days of a military crisis. He argued that the EU must plan for both peacetime needs and wartime demand, keep sufficient production and refining capacity, and secure fuel access in a crisis. Kubilius also said the EU must assess how to extend the Central European pipeline system, built during the Cold War, to supply the eastern flank, and he stressed the need to protect critical fuel infrastructure.

No return to Russian fossil fuels

Separately, Commission spokesperson Paula Pinho said EU rules prevent the bloc from resuming imports of Russian fossil fuels. She was responding to press reports that Moscow and Washington were discussing reopening the Nord Stream pipeline and restoring Russian gas flows to Europe once the war in Ukraine ends. Pinho said von der Leyen had stated clearly that energy sanctions will remain in force until Russia ends the war. She added that the EU knows well the hidden costs of relying on Russia for fossil fuel purchases.