Nations around the world are scrambling to protect their citizens from dramatically rising energy prices caused by the ongoing U.S.-Israeli conflict with Iran, implementing a wide range of emergency economic measures.
The global response varies significantly by country, with each implementing strategies tailored to their specific energy needs and economic situations.
European Response
In Britain, officials are working to require older wind and solar energy facilities to accept fixed-price contracts as a way to reduce consumer energy bills.
The Netherlands has rolled out emergency tax relief to offset climbing fuel costs and is preparing additional interventions should the energy situation deteriorate further.
Sweden plans to reduce fuel taxes while increasing electricity subsidies through its upcoming spring budget adjustment, aiming to ease household financial burdens from elevated energy expenses.
European Union leadership has advocated for short-term relief strategies to address the energy price spike, proposing electricity tax reductions, decreased grid charges, and government assistance programs.
Italy’s Prime Minister Giorgia Meloni indicated her country is exploring excise duty cuts to reduce fuel costs and considering higher taxes on companies that may be unfairly profiting from the energy crisis.
Spanish leadership expects parliamentary approval for cabinet-proposed relief measures, including reduced fuel and electricity taxes plus subsidies for industries most vulnerable to energy price increases.
Greece will provide fuel and fertilizer subsidies along with discounted ferry tickets totaling 300 million euros during April and May to protect consumers and agricultural producers, according to Prime Minister Kyriakos Mitsotakis.
Romania announced a reduction in diesel excise taxes of 0.30 lei per liter, while Slovenia has temporarily restricted fuel purchases to address pump shortages caused partly by cross-border buying and hoarding.
Poland’s finance minister said the country is developing solutions to lower fuel prices, potentially through VAT reductions.
North Macedonia cut fuel VAT from 18% to 10% for a two-week period starting March 23, Prime Minister Hristijan Mickoski announced to local media.
Asian Measures
India is taking multiple approaches, including reviewing fuel export policies to ensure domestic availability and evaluating supply requests from neighboring countries, approving exports only when surplus exists.
The country has prohibited consumers with piped natural gas access from keeping or obtaining domestic LPG cylinders while strengthening infrastructure to accelerate the transition to piped gas. Emergency powers have been activated to direct refineries to maximize LPG production for cooking fuel, with industrial sales reduced to prevent shortages for 333 million households.
South Korea is relaxing restrictions on coal power generation capacity while increasing nuclear plant utilization to 80%. Officials are also considering additional energy vouchers for vulnerable households and have implemented a naphtha export ban to boost domestic supplies.
China has prohibited refined fuel exports to prevent potential domestic shortages and is releasing fertilizer from national reserves ahead of spring planting season, according to sources.
Japan’s industry ministry will relax regulations for one year to increase coal-fired power plant usage in the new fiscal year. The country has urged the G7 and International Energy Agency to prepare flexible measures for energy market stabilization if the Iran conflict continues, while requesting increased LNG output from Australia and planning higher imports of intermediate chemical products due to tighter naphtha supplies.
Thailand has explored crude oil purchases with Russia and aims to cap domestic diesel prices at 33 baht per liter. The government will also freeze certain goods prices and provide farmer support.
The Philippines suspended its wholesale electricity spot market across all grids due to fuel supply risks and price volatility, while planning to reduce power bills by increasing coal generation and regulating electricity rates. The country is working with Washington to secure exemptions allowing oil purchases from sanctioned nations and has activated a 20 billion peso emergency fund for fuel security.
Vietnam will accelerate its transition to ethanol-blended gasoline to reduce fossil fuel dependence, while Singapore’s prime minister announced early implementation of budget support measures for households and businesses.
Indonesia’s President Prabowo Subianto wants increased coal production, with the government considering export windfall taxes. The country will begin implementing B50 biodiesel on July 1, mixing 50% palm oil-based biodiesel with conventional diesel as part of Iran war risk mitigation.
Other Global Actions
Australia is releasing gasoline and diesel from domestic reserves to address shortages affecting rural supply chains, mining, and agriculture. The prime minister warned that economic impacts from the conflict will persist for months and encouraged public transportation use.
Bangladesh is seeking billions in external financing to secure fuel and LNG imports, while Serbia will reduce crude oil excise duties by 60% cumulatively and has extended export bans on crude oil and fuel products.
Argentina delayed scheduled increases in liquid fuel and carbon dioxide taxes through government decree.
Cambodia is increasing fuel imports from Singapore and Malaysia to compensate for supply shortfalls from Vietnam and China.
Malaysia will triple petrol subsidy spending to 2 billion ringgit from 700 million ringgit to maintain fixed fuel prices, while implementing measures to address fertilizer supply shortages and warning that energy supplies may be exhausted by May’s end.
Brazil launched a new program helping states subsidize diesel imports, having previously eliminated federal diesel taxes and imposed 12% oil export taxes in March.
Egypt has capped unsubsidized bread prices at private bakeries and will increase local wheat procurement prices to 2,500 pounds per ardeb for this year’s harvest to build strategic commodity reserves.
Ethiopia has increased fuel subsidies, while Mauritius introduced energy conservation measures including restrictions on non-essential grid power uses like decorative lighting and pool heating.
Namibia temporarily reduced fuel levies by 50% through June to protect consumers from higher pump prices.
Nigeria’s Dangote refinery, Africa’s largest, has increased gasoline and urea exports to African countries experiencing supply disruptions from the conflict.
Sri Lanka will implement additional fuel rationing to reduce queues and secure extra oil supplies.
South Africa reduced its fuel levy for one month to prevent further April fuel price increases.
