EU Faces Urgent Calls Against Proposed Gas Price Cap

European energy producers and traders are urging the EU to abandon plans for a gas price cap, warning that it could destabilize the market and undermine supply security. The call comes as the European Commission prepares to unveil a strategy on February 26 aimed at enhancing industrial competitiveness and addressing soaring energy costs, with gas prices recently spiking to a two-year high amid cold weather and diminished reserves. A letter signed by various industry associations, including Eurogas and Energy Traders Europe, emphasizes that a price cap could lead to increased price volatility and damage trust in EU gas pricing benchmarks. While some EU officials have floated the idea of reviving a price cap, which was never activated during the previous energy crisis, member states remain divided on the proposal. Critics argue that such measures could complicate Europe’s ability to compete for liquefied natural gas in global markets. The Commission has prioritized reducing energy costs but faces significant pushback from the energy sector regarding potential interventions.