Key facts
- Emmanuel Macron asked the EU to ease fuel quality and methane emissions reporting rules.
- Macron requested a one-year delay on fines for oil and gas companies failing to report methane emissions.
- Macron also proposed softening rules on fuel quality and allowing more biofuels in diesel.
- Macron cited the need to strengthen import and production capacities in the short term.
- Europe's diesel benchmark rose to more than $200 per barrel this week.
- Saudi Aramco told European refiners they will receive no crude under term contracts in October.
French President Emmanuel Macron has called on European Commission President Ursula von der Leyen to relax EU regulations on fuel composition and methane emissions reporting in an effort to control soaring energy prices. Macron specifically requested a one-year delay on the implementation of fines for oil and gas companies that do not report their methane emissions. This rule, intended to curb potent greenhouse gas emissions, has faced criticism from the U.S. government and the fossil fuel industry, who argue it could deter oil and gas imports and compromise Europe's energy security.
In addition to the methane emissions reporting, Macron also proposed a temporary easing of EU standards for fuel quality, which govern aspects like density and vaporization limits. He suggested allowing a greater proportion of biofuels in diesel. Macron stated in a letter to von der Leyen that these adjustments, if implemented at the European level, could collectively enhance import and production capabilities in the short term. The European Commission had previously advised member states to postpone fining non-compliant companies until the end of 2029, but Macron sought a clearer one-year delay to provide greater legal certainty for fossil fuel importers.
Macron is also calling for another release of emergency oil stocks as Europe faces supply constraints and record diesel prices. He will convene G7 countries to discuss stock levels, exports, and production capacity, and consider tapping strategic reserves. France is working to secure diesel, jet fuel, and natural gas supplies for the coming months. Europe's diesel benchmark rose to more than $200 per barrel this week, with taxes pushing retail-equivalent costs above $300. Russia has extended restrictions on diesel exports, and Middle Eastern product exports are still constrained. Saudi Aramco informed at least two European refiners they will receive no crude under term contracts in October following an attack on its East-West pipeline, though the company is trying to restore partial capacity within days. Most of Aramco's rerouted barrels are headed to Asian refiners, while Europe buys replacement crude from the North Sea and elsewhere. The G7 has already released over 300 million barrels of emergency stocks since March, and global observed inventories are significantly lower than before the war in Ukraine.