The European Union is considering requiring countries to hold stockpiles of jet fuel, and potentially redistribute it based on regional needs and shortages, Europe’s energy policy chief told Reuters on Wednesday, as concerns mount over possible shortages tied to the U.S.-Israeli war with Iran.

The European Commission on Wednesday proposed measures to address the energy ⁠fallout from the U.S.-Israeli war with Iran, including EU-wide monitoring of refinery output in an effort to maximize capacity.

EU Energy Commissioner Dan Jorgensen told Reuters that going further, by introducing rules requiring countries to hold jet fuel reserves, “is certainly something we’d consider.” He added that it was too early to say if jet fuel sharing was necessary.

“We will be able to, if necessary, introduce redistribution tools and other things that we don’t normally do in this sector. Normally, we let the market decide, but we can end up in a crisis where ⁠it is indeed security of supply that is the problem, and not only prices,” he said in an interview.

The EU requires countries to hold 90 days’ worth of oil and oil products in reserve, as a buffer against shortages. Countries can include jet fuel in this stockpile, but there is ⁠currently no requirement to do so.

The EU has said jet fuel shortages are not currently an issue, but a prolonged blockage of the Strait of Hormuz could lead to longer-term challenges.

The International Energy Agency ⁠has forecast shortages by June if Europe can only replace half of the supplies it normally gets from the Middle East.

Jorgensen added that he was hopeful there was room to ⁠increase European jet fuel refinery output.

Already, a number of European carriers, including TUI and easyJet have issued profit warnings on the back of the fallout of the war, with many saying their outlooks are uncertain.

Source: Reuters

--Agencies