Business · Energy & Commodities · 9 hrs ago
Eni chief says fuel price caps ease costs but do not fix supply problems
Eni CEO Claudio Descalzi says price caps, tax cuts and subsidies can ease the immediate impact of high fuel costs, but they do not solve the underlying problems.
The crisis involves Europe, where oil and gas prices have risen amid disruption to supplies from the Gulf linked to conflict in the Middle East.
Descalzi said higher tanker fees, insurance costs and difficulty finding cargoes have added $20 to $30 to the cost of each barrel of oil.
He also said Europe is vulnerable because it has limited oil resources and has closed more than 30 refineries, including six in Italy.
The lack of refining capacity makes it harder for Europe to secure fuel products, even when crude oil is available.
Governments have released reserves to limit price rises, but Descalzi said this cannot continue indefinitely; the EU plans to release another 100 million barrels over the next four months.
He argued that Europe needs to address the causes of its dependence, including underinvestment in refining.
Eni chief executive Claudio Descalzi said fuel price caps, tax cuts and subsidies ease the effects of the energy crisis but do not address its causes.
He pointed to higher tanker freight and insurance costs, harder-to-find cargoes and a shortage of refining capacity in Europe.
Descalzi said tanker costs added $20–30 per barrel, despite a recovery in oil flows through the Strait of Hormuz.
He said more than 30 European refineries have closed, including six in Italy.
Europe plans to release 100 million barrels from strategic reserves over the next four months.
- Who
- Claudio Descalzi, chief executive of Eni.
- What
- He said price caps, reduced fuel taxes and subsidies ease the effects of the crisis but do not solve its causes.
- When
- He made the comments on 20 October 2026.
- Where
- In a video message to the Coldiretti assembly; the article does not state where it was held.
- Why
- He cited higher tanker costs, supply disruptions and Europe’s shortage of refining capacity.
This story does not have two clearly opposing sides.
Average flows through the Strait of Hormuz recovered by 50%, Descalzi said.
Descalzi delivered a video message to the Coldiretti assembly.
Europe is due to release a further 100 million barrels from strategic reserves.
- Added tanker costs
- $20–30 per barrel
- Refinery closures
- More than 30 in Europe, including six in Italy
- Hormuz flows
- Average recovery of 50% in September
- European reserve release
- 100 million barrels over the next four months
- Oil supply gap
- Demand exceeded supply by about 2 million barrels per day
What people are saying
We are certainly in an emergency, one of the deepest we have experienced in the last 40 years.
Our paracetamol is price caps, reduced excise duties and subsidies.
These measures are necessary to treat the effects of the disease, but they do not cure its causes.