Global Governments Shield Households from High Energy Costs
Nations are cutting taxes and banning fuel exports to protect households from rising costs. These measures include subsidies and coal use to stabilize supply.
Governments across the globe are implementing emergency measures to protect citizens from a sharp rise in energy prices triggered by the ongoing conflict involving the United States, Israel, and Iran. From export bans to direct subsidies, nations are prioritizing domestic supply security to mitigate the economic impact on households and key industries. In India, the government has invoked emergency powers to direct refiners to maximize the production of liquefied petroleum gas (LPG). To protect 333 million homes, authorities have restricted industrial sales and barred piped natural gas users from holding domestic cylinders, a move impacting suppliers like Dorian LPG Ltd.. > India will review its fuel exports if needed to ensure availability in the local markets, a government official said. South Korea is responding by increasing nuclear power utilization to 80% and easing limits on coal generation. To stabilize the internal market, SK Gas Co., Ltd. and other regional suppliers face a ban on naphtha exports that took effect this week. Similarly, China has prohibited refined fuel exports to prevent shortages and is releasing fertilizer supplies from national reserves, affecting firms such as China XLX Fertiliser Ltd.. In the South Pacific, Australia has begun releasing petrol and diesel from its domestic reserves to support rural supply chains, mining, and agriculture. Japan is also relaxing regulations for one year to maximize coal-fired power plants, a shift that involves industrial components from providers like Oiles Corporation. Tokyo has further urged the International Energy Agency and major suppliers to take flexible measures to stabilize global markets. The European Union is exploring short-term fixes including electricity tax cuts and lower grid fees, which impact regional utilities like Jersey Electricity plc. In Serbia, excise duties on crude oil will be slashed by 60% to calm local markets, while domestic firms like Naphtha Israel Petroleum Corp. Ltd. navigate export bans on crude and fuel products. Italy is considering similar excise cuts alongside potential windfall taxes. > Italian Prime Minister Giorgia Meloni has said Italy is considering cutting excise duties to soften fuel prices and is ready to raise taxes on firms responsible for unduly capitalising on the energy crisis. In Spain, the government is pushing for fuel subsidies and tax reductions for sectors most exposed to price spikes. Greece has announced a 300 million euro package for fuel and fertilizer subsidies. > Greece will offer subsidies for fuel and fertilisers and ferry ticket discounts worth a total 300 million euros in April and May to shield consumers and farmers, Prime Minister Kyriakos Mitsotakis said. Across Southeast Asia, Cambodia is increasing imports from Singapore and Malaysia to offset regional shortfalls. Malaysia itself is nearly tripling its petrol subsidy spending to 2 billion ringgit. Thailand is exploring crude oil purchases from Russia while capping domestic diesel prices. The Philippines has suspended its wholesale electricity spot market due to volatility and is activating a 20 billion peso emergency fund. Vietnam is accelerating its transition to ethanol-blended gasoline, a sector served by TULASEE BIO-ETHANOL LTD. Meanwhile, Indonesia aims to boost coal production, potentially benefiting companies like Warrior Met Coal, Inc., and is launching a B50 biodiesel program involving RAJPUTANA BIODIESEL LTD. In other regions, Bangladesh is seeking billions in external financing for LNG imports, and Sri Lanka has introduced new fuel-rationing measures. Slovenia has temporarily limited fuel purchases to prevent stockpiling. In Africa and the Americas, South Africa and Namibia are reducing fuel levies, while Brazil has scrapped federal taxes on diesel and taxed oil exports. Egypt has capped the price of unsubsidised bread, and Ethiopia has increased fuel subsidies. Mauritius has implemented strict energy-saving measures, including curbs on decorative lighting. Finally, in Eastern Europe, North Macedonia has slashed VAT on gasoline and diesel from 18% to 10%. > The measure will come into effect on March 23 at midnight and will be in effect for two weeks, Prime Minister Hristijan Mickoski told local media. Poland is also finalizing solutions to lower fuel prices through VAT adjustments to ease the burden on consumers.
