EU methane tracking rule could trigger sharp rise in fuel prices
A new EU regulation on methane emissions from oil and gas production may push gasoline prices up by about a quarter, according to a Wood Mackenzie study.
A study by consultancy Wood Mackenzie suggests that the European Union's forthcoming rule on tracking methane released during oil and gas extraction could increase gasoline prices by about 24 %. The regulation is intended to reduce emissions of methane, a greenhouse gas with a warming effect forty times stronger than carbon dioxide. The EU has previously succeeded in lowering emissions of ozone-depleting refrigerants and now aims to replicate that approach for methane by imposing stricter standards on producers.
However, the potential cost impact on motorists has raised concerns, particularly after French President Emmanuel Macron urged a total mobilisation on fuel supply and pricing. Analysts note that while the environmental goal is clear, the path to implementation and its effect on consumers remain uncertain.
