Are rising oil prices mainly the result of long term economic changes at global level, or is speculation more of a factor? Should taxes on energy be cut across the board to help consumers and businesses, or should support be targeted on those hardest hit? These were some of the issues raised in a debate with Council and Commission on the impact of the high oil and energy prices.

Energy Commissioner Andris Piebalgs told MEPs he started each day by checking oil prices, and lately the direction was always up. The dollar price had tripled in three years. "Our dependency on imported oil is high and costs are increasing steadily. There is a direct negative impact on citizens and businesses."

The Commission, he said, had been working through a five-point plan since 2005, with steps on energy efficiency, cars, fuel quality and renewable energy. This should lead to a decrease in oil consumption in the years ahead, as the switch to more efficient and renewable energy sources begins. "Our policies have not failed: without them the current situation would be even harder. But we need to step up our efforts," he said.

In the short term, there could be steps to help consumers and the most vulnerable groups through social measures, targeted at poorest households, but he said we should be cautious about tax changes. They were often politically attractive, but could end up making the long term problem more difficult.

The recent climate and energy package was aimed at sustainability, security of supply and efficiency. "We should lead international action and enable functioning of global, efficient energy markets. A renewed push for renewable energy is beneficial for the climate, but also our economy."

For the Council presidency -in-office, Slovenian European affairs minister Janez Lenarcic stressed that the causes of the oil price rises were structural in nature: it was unlikely that oil production would increase to meet demand. Solutions would have to be long-term in nature and would include more competitive energy markets, greater transparency on the oil markets, diversification of supply and increased energy efficiency.

Mr Lenarcic recalled the EU's goals of cutting energy consumption by 20% and deriving 20% of energy from renewable sources by 2020. Legislation would not be enough to achieve energy savings: both domestic and industrial consumers must be urged to make an effort. And measures in addition to those already taken by the EU would be needed to promote diversification.

The minister also reminded the House of the Manchester Agreement of 2003, under which the EU had undertaken "not to react to oil prices through distorting fiscal measures". In addition, he referred to last week's G8 meeting, which had concluded that "oil price rises are a global problem requiring a global solution". Concluding, he said the need was for coordinated measures at EU and international level, and these measures "must be prudent and not create fresh problems".