FACTBOX: How governments worldwide are shielding households from rising energy costs

Global Governments Take Action to Shield Consumers from Rising Energy Costs Amid U.S.-Israel-Iran Conflict

May 12 (Reuters) – Governments worldwide are implementing measures to protect consumers from soaring energy costs triggered by the ongoing U.S.-Israeli war on Iran. Countries across Asia, Europe, and the Americas are introducing subsidies, tax adjustments, and supply management strategies to stabilize fuel, electricity, and essential goods prices.

Here’s how various nations are responding:

Argentina

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

Australia

Authorities are releasing petrol and diesel from domestic reserves to ease shortages affecting rural supply chains, mining, and agriculture.

The prime minister encouraged citizens to use public transportation where possible.

Bangladesh

Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports.

Brazil

Measures include subsidies for diesel and liquefied petroleum gas, along with lower taxes on jet fuel and biodiesel.

The government is exploring ways to accelerate testing of higher biodiesel blends in diesel fuel.

China

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

Export restrictions on most fertilizer products were tightened in mid-March to protect domestic farmers.

Egypt

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

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

Ethiopia

Fuel subsidies have been increased to help consumers cope with rising prices.

European Union

Member states can spend more on subsidizing companies affected by high fuel and fertilizer costs.

Plans include requiring jet fuel stockpiles and coordinating gas storage refills during summer.

Electricity tax cuts are being considered to ease consumer costs.

Greece

The government will provide subsidies for fuel and fertilizers, ferry ticket discounts totaling €300 million ($346 million), and €500 million ($588 million) in extra aid for households and farmers impacted by the Iran war.

India

Prime Minister Narendra Modi urged fuel conservation and the revival of work-from-home practices.

Windfall taxes on diesel and aviation turbine fuel exports were raised to secure domestic supply.

Regulations were imposed to maximize LPG production, while piped gas consumers are restricted from retaining cylinders.

Indonesia

Measures include limiting fuel sales and implementing work-from-home policies for civil servants.

Coal production may increase, and a windfall tax on exports is under consideration.

The B50 biodiesel program, blending 50% palm oil-based biodiesel with conventional diesel, will begin on July 1.

Italy

Excise duty cuts on fuels have been extended, with a greater focus on diesel than petrol.

Malaysia

Federal ministries and agencies have been instructed to reduce operating budgets for 2026.

Spending on petrol subsidies will increase from 700 million to 2 billion ringgit ($510 million) to maintain fixed fuel prices.

Measures are being applied to shore up fertilizer supply.

Mauritius

Energy-saving measures include restrictions on decorative lighting, swimming 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 announced to offset rising fuel prices, with additional measures ready if the energy crisis worsens.

Nigeria

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

Philippines

The wholesale electricity spot market has been suspended across all three grids due to fuel supply risks.

Coal-fired power generation will be boosted, and electricity tariffs regulated to curb power bills.

Efforts are underway with Washington to secure oil from U.S.-sanctioned countries.

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

Poland

Fuel price control measures may extend beyond May 15, depending on developments, 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 a cumulative 60%, with an extension of the crude oil and fuel export ban.

Singapore

A support package of nearly S$1 billion ($780 million), including cash handouts and fuel vouchers, will be delivered to offset the economic impact.

Slovenia

Fuel purchases have been temporarily limited to address shortages at the pump.

South Korea

Limits on coal-fired power generation have been eased, and nuclear plant utilization will increase to 80%.

Naphtha exports have been banned to boost domestic supplies.

Spain

Proposed measures totaling €5 billion ($5.8 billion) aim to counter energy price spikes from the Middle East conflict.

Sri Lanka

$1.73 billion in funding from international agencies and India will help manage energy import costs.

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

Sweden

Officials warned of potential jet fuel shortages and encouraged flexibility in travel plans.

Fuel taxes will be cut, and electricity subsidies increased in a spring mini-budget.

Thailand

Crude palm oil exports have been restricted, and bottled palm oil prices controlled.

Borrowing guarantees and other support measures are planned to mitigate high oil costs.

Price freezes and support for farmers will be implemented.

United Kingdom

Plans include decoupling electricity costs from volatile gas prices and placing older wind and solar generators on fixed contracts to reduce bills.

Vietnam

Ethanol-blended gasoline adoption will be accelerated to reduce fossil fuel reliance.

As energy markets remain volatile, governments are taking a range of fiscal, regulatory, and strategic measures to protect households, businesses, and essential supply chains.

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