International Energy Agency chief: Bills could rise this winter

Fatih Birol, head of the International Energy Agency, said energy prices could rise rapidly this winter. In that case, governments may have to step back and subsidize bills, Birol said.

Speaking to the BBC’s Today programme, Birol said many European governments made a “strategic mistake” by relying heavily on Russia for energy. Birol said that European countries are blindfolded by short-term trade decisions on foreign policy.

Birol said that if the Chinese economy strengthens quickly and there is a harsh winter, gasoline prices may increase and put pressure on consumers, adding that governments should exert pressure on energy saving.

In his speech, Birol said: “In a scenario where the Chinese economy is very strong, taking a lot of energy from the markets and we have a harsh winter, we may see strong upward pressure on natural gas prices, which will put an additional burden for the consumers”.

THE SPEED OF ECONOMIC ACTIVITY IN CHINA WILL BE MONITORED

After the Russian invasion of the Ukraine, natural gas prices rose sharply and natural gas and electricity bills increased around the world.

On the other hand, the stagnation of the economy due to the coronavirus epidemic in China has drastically reduced the demand for energy in recent years.

According to Birol, natural gas and oil prices may increase as the rapid recovery in China will increase demand for energy. Although China’s growth rate has been on a downward trend for several years, the economy is experiencing a revival after anti-Covid-19 pandemic measures were lifted last year.

On the other hand, rating agencies are lowering their growth forecasts for the Chinese economy.