Recent Trends in Energy Prices

15-12-2015

After a dramatic fall in 2014, oil and fuel prices in euro terms increased in the first part of 2015, before decreasing again and since mid-2015 to record low levels, similar to early 2015. However, retail gas and electricity prices - which traditionally follow similar trends with some delay stabilized or in some cases even increased, in large part due to higher taxes. Large differences persist amongst EU Member States and commodities. Conversely, most experts claim that fossil fuel prices can be expected to stay “low for long.” Notwithstanding important recent progress in developing renewable fuel sources, low fossil fuel prices could discourage innovation in and adoption of cleaner energy technologies. This paper was prepared by Policy Department A for the Industry, Research and Energy Committee (ITRE).

After a dramatic fall in 2014, oil and fuel prices in euro terms increased in the first part of 2015, before decreasing again and since mid-2015 to record low levels, similar to early 2015. However, retail gas and electricity prices - which traditionally follow similar trends with some delay stabilized or in some cases even increased, in large part due to higher taxes. Large differences persist amongst EU Member States and commodities. Conversely, most experts claim that fossil fuel prices can be expected to stay “low for long.” Notwithstanding important recent progress in developing renewable fuel sources, low fossil fuel prices could discourage innovation in and adoption of cleaner energy technologies. This paper was prepared by Policy Department A for the Industry, Research and Energy Committee (ITRE).