Norway's Prime Minister says Europe shouldn't cap gas prices
The Norwegian prime minister said that Europe should not cap the price of natural gas, even though costs are rising due to the conflict in the Middle East.
The benchmark TTF front-month gas contract on the continent has increased by around 60% since the U.S. and Israeli war against Iran, as well as the attacks of?Tehran on ships in Strait of Hormuz.
On Wednesday, Ursula von der Leyen, President of the European Commission, said that the European Union is considering measures to reduce energy prices. This includes setting a cap on gas prices.
While capping the price might be tempting, it could lead to a bigger problem by increasing demand in a period of decreasing supply, said Norway's Premier Jonas Gahr Stoere.
Stoere said at an energy conference held in Oslo that "it doesn't solve our challenge."
He said that Norway, Europe's largest natural gas supplier, would remain a reliable energy provider for the continent.
Stoere stated that Europe did not impose gas price caps during a spike in prices after Russia's full-scale invasion into Ukraine 2022. Norway would?continue to fight against such a cap.
Before oil and gas prices rose in the United States and China, Brussels was drafting "proposals" to help industries that claim they can't compete because of high energy prices. (Reporting and editing by Nora Buli, Terje Solsvik, and Joe Bavier).
(source: Reuters)
