Governments worldwide shield households from rising energy costs

Governments worldwide are implementing measures to shield consumers from soaring energy costs following the U.S.-Israeli war on Iran. Here’s how different countries are responding:

Argentina

The government partially increased fuel taxes while postponing further hikes until June, according to a decree.

Australia

Petrol and diesel will be released from domestic reserves to ease shortages affecting rural supply chains, mining, and agriculture.

The Prime Minister encouraged citizens to use public transport.

Bangladesh

Authorities are seeking billions in external financing to secure fuel and liquefied natural gas (LNG) imports.

Brazil

The government announced subsidies for diesel and liquefied petroleum gas, as well as lower taxes on jet fuel and biodiesel.

Brazil is exploring ways to accelerate testing of higher biodiesel blends in diesel.

China

China pledged to strengthen energy security while pursuing rapid technological development and greater self-sufficiency.

In mid-March, Beijing restricted exports of most fertilizer products to protect domestic farmers.

Egypt

Egypt signed a $1.5 billion loan agreement with the International Islamic Trade Finance Corporation to support food and energy security.

Large state projects with high fuel consumption will slow for at least two months, and fuel allocations for government vehicles will be cut by 30%.

The price of unsubsidized bread in private bakeries has been capped.

Ethiopia

Fuel subsidies have been increased.

European Union

Governments will be allowed to spend more on subsidies for companies affected by rising fuel and fertilizer prices.

The EU is considering stockpiling jet fuel and redistributing it based on regional needs.

Plans are in place to cut electricity taxes and coordinate the summer refill of gas storage.

Greece

Greece will provide subsidies for fuel, fertilizer, and ferry tickets worth 300 million euros ($346 million) in April and May.

Additional aid of 500 million euros ($588 million) will support households and farmers affected by the conflict.

India

Prime Minister Narendra Modi urged citizens and businesses to conserve fuel and revive work-from-home practices.

Windfall taxes on diesel and aviation turbine fuel exports have been raised to maintain domestic supply.

Piped natural gas consumers are barred from retaining or refilling LPG cylinders, with refiners directed to maximize LPG production.

Indonesia

Measures include limiting fuel sales, promoting work-from-home for civil servants, and implementing the B50 biodiesel program starting July 1.

President Prabowo Subianto aims to increase coal production, while a windfall tax on exports is under consideration.

Italy

The government extended excise duty cuts on fuels, focusing more on diesel than petrol.

Malaysia

Federal ministries and agencies must reduce operating budgets for 2026 due to Iran war costs.

Petrol subsidies will rise from 700 million to 2 billion ringgit ($510 million) to maintain fixed fuel prices.

Measures are being applied to secure fertilizer supply amid domestic shortages.

Mauritius

Energy-saving measures will restrict non-essential electricity use, including decorative lighting, pool heating, and fountains.

Namibia

Fuel levies will be reduced by 50% for at least three months until the end of June.

The Netherlands

Temporary tax breaks have been introduced to ease rising fuel prices, with further measures planned if the crisis worsens.

Nigeria

The Dangote refinery increased exports of gasoline and urea to African countries affected by supply disruptions.

Philippines

The wholesale electricity spot market has been suspended due to fuel supply risks and price volatility.

Power bills will be curbed by boosting coal-fired power generation and regulating electricity tariffs.

The country is seeking U.S. waivers to import oil from sanctioned nations.

A 20 billion peso ($333 million) emergency fund has been activated to strengthen fuel security.

Poland

Fuel price control measures may remain in place after May 15 if necessary, according to Finance Minister Andrzej Domanski.

Romania

Excise tax on diesel will be reduced by 0.30 lei ($0.068) per liter.

Serbia

Excise duties on crude oil will be cut by 60%, and crude oil and fuel exports remain banned.

Singapore

A support package worth nearly S$1 billion ($780 million) will include cash handouts and fuel vouchers.

Slovenia

Fuel purchases will be temporarily limited to address pump shortages caused by cross-border fueling and stockpiling.

South Korea

Limits on coal-fired power generation will be eased, nuclear plant utilization raised to 80%, and naphtha exports banned to boost domestic supply.

Spain

Measures worth 5 billion euros ($5.8 billion) are proposed to mitigate the energy cost impact from the Middle East conflict.

Sri Lanka

Funding of $1.73 billion from international agencies and India will help manage rising energy import costs.

Fuel rationing has been introduced, and Wednesdays declared public holidays.

Sweden

Jet fuel shortages are possible; fuel taxes will be cut, and electricity subsidies increased in the spring mini-budget.

Thailand

Crude palm oil exports are restricted, bottled palm oil prices controlled, and an oil subsidy fund borrowing guarantee is planned.

Prices of certain goods will be frozen, with additional support for farmers.

United Kingdom

The government plans to reduce the link between electricity costs and volatile gas prices, moving older wind and solar generators to fixed contracts.

Vietnam

Ethanol-blended gasoline will be adopted earlier than planned to reduce fossil fuel usage.

-Reporting by Katha Kalia, Ashitha Shivaprasad, and Anjana Anil in Bengaluru; Editing by Mark Potter, Hugh Lawson, and Cynthia Osterman/Reuters