May 12 - Governments across the globe have rolled out a variety of measures aimed at insulating households, farmers and critical industries from sharply higher energy costs tied to the U.S.-Israeli war on Iran. Responses range from fiscal interventions such as subsidies and tax relief to operational moves including release of strategic stocks, limits on exports and changes in generation rules.
The following is a country-by-country accounting of announced measures and policy adjustments. Each entry reflects official steps reported by governments or their agencies to manage supply, ease price pressures and prioritise domestic needs.
- Argentina - The government enacted a partial increase in fuel taxes but delayed additional tax hikes until June, according to a formal decree.
- Australia - Canberra has ordered releases of petrol/gasoline and diesel from domestic reserves to alleviate shortages that are disrupting rural supply chains, mining operations and agricultural activities. Separately, the prime minister has encouraged greater use of public transport.
- Bangladesh - Bangladesh is seeking billions in external financing to secure imports of fuel and liquefied natural gas.
- Brazil - Brazilian authorities announced a package including subsidies for diesel and liquefied petroleum gas and reductions in taxes on jet fuel and biodiesel. The government is also exploring ways to accelerate testing of higher biodiesel blends in diesel.
- China - China’s top leadership pledged to bolster energy security while pursuing faster technological development and greater self-sufficiency. In mid-March, Beijing tightened export controls on most fertiliser products to protect domestic farmers.
- Egypt - Egypt will slow or defer large state projects with high fuel and diesel consumption for at least two months and cut fuel allocations for all government vehicles by 30%. The government has also capped the price of unsubsidised bread sold in private bakeries.
- Ethiopia - Ethiopia has raised fuel subsidies.
- European Union - The EU will permit member states to increase spending on subsidies for companies affected by rising fuel and fertiliser prices. The European Commission is examining requirements for countries to hold jet fuel stockpiles and to potentially redistribute supplies based on regional shortages. The Commission also set out plans to reduce electricity taxes and to coordinate the summer refill of member states’ gas storage.
- Greece - The Greek government announced fuel and fertiliser subsidies and ferry ticket discounts amounting to 300 million euros for April and May. It also unveiled 500 million euros in additional aid to households and farmers after a larger-than-expected primary budget surplus for 2025 provided room for further support.
- Japan - Japan will relax regulations for the fiscal year that began in April to increase use of coal-fired power plants. The government opened parts of its oil stockpiles, introduced gasoline subsidies and said it is seeking energy supplies from beyond the Middle East. Japan also plans to raise imports of intermediate chemical products such as plastics in response to tighter naphtha supplies caused by the conflict.
- India - Prime Minister Narendra Modi urged citizens and businesses to conserve fuel and to revive work-from-home practices to cut petrol and diesel consumption. India raised a windfall tax on exports of diesel and aviation turbine fuel to safeguard domestic supplies. The government has barred consumers with piped natural gas connections from retaining or refilling LPG cylinders and has invoked emergency powers directing refiners to maximise LPG production, a fuel widely used for cooking.
- Indonesia - Jakarta announced several measures including limits on fuel sales and a work-from-home policy for civil servants. President Prabowo Subianto has called for higher coal production, and the government is considering a windfall tax on exports. Indonesia will implement the B50 biodiesel programme on July 1; B50 is defined as a 50% palm oil-based biodiesel blend with 50% conventional diesel and forms part of the country’s efforts to mitigate risks from the Iran war.
- Italy - Italy extended cuts to excise duties on fuels, with measures weighted more heavily to support diesel than petrol.
- Malaysia - Malaysia’s finance ministry ordered all federal ministries, departments and agencies to reduce operating budgets for 2026 because of costs related to the Iran war. The country will raise petrol subsidy spending to 2 billion ringgit from 700 million ringgit to preserve the fixed price of the fuel. Authorities also said they are taking steps to stabilise domestic fertiliser supplies amid a crunch.
- Mauritius - The government announced energy-saving measures that include restrictions on grid power for non-essential uses such as decorative lighting, swimming pool heating and fountains.
- Namibia - Namibia will temporarily halve fuel levies for at least three months, through the end of June.
- The Netherlands - The Dutch government introduced temporary tax breaks to offset higher fuel costs and said it would prepare additional measures if the energy situation worsens.
- Nigeria - Africa’s largest refinery, Dangote, has increased exports of gasoline and urea to other African countries affected by supply disruptions stemming from the war.
- Philippines - The energy market regulator suspended the wholesale electricity spot market across the country’s three grids until further notice because of fuel supply risks and price volatility. The regulator also plans to limit power bills by boosting coal-fired generation and by regulating electricity tariffs. The Philippines is seeking waivers from Washington to import oil from countries under U.S. sanctions to guarantee supplies, and the energy ministry said it is activating a 20 billion peso emergency fund to strengthen fuel security amid oil price volatility.
- Poland - Poland’s finance minister, Andrzej Domanski, said fuel price control measures introduced because of the Middle East war could remain in place after May 15 if circumstances require it.
- Romania - The government will cut the excise tax on diesel by 0.30 lei per litre.
- Serbia - Serbia will reduce excise duties on crude oil by a cumulative 60% and has extended a ban on crude oil and refined product exports.
- Singapore - The city-state will deliver a support package worth almost S$1 billion, including cash handouts and fuel vouchers, to offset the economic effect of the conflict.
- Slovenia - Authorities temporarily limited fuel purchases to address shortages at the pump caused in part by cross-border fuelling and stockpiling.
- South Korea - Seoul is loosening limits on coal-fired power generation and raising nuclear plant utilisation to as much as 80%. The government has also begun enforcing a ban on naphtha exports to prioritise domestic supplies.
- Spain - Madrid proposed measures amounting to 5 billion euros to counter the economic impact of the conflict on domestic energy prices.
- Sri Lanka - Sri Lanka is relying on $1.73 billion in financing from international agencies and India to manage the fiscal burden of higher import energy costs. The government introduced fuel rationing and declared Wednesdays a public holiday as part of demand-management steps.
- Sweden - Sweden warned of a possible shortage of jet fuel and advised travellers to build flexibility into travel plans. The government will cut fuel taxes and increase electricity subsidies in its spring mini-budget.
- Thailand - Thailand’s Commerce Ministry tightened controls on crude palm oil exports and regulated bottled palm oil prices. The government is planning a borrowing guarantee for an oil subsidy fund and other measures to mitigate high oil prices. The national planning agency said the government will freeze prices of some goods and provide support for farmers.
- United Kingdom - The UK plans to weaken the link between retail electricity bills and volatile gas prices by moving older wind and solar generation onto fixed contracts to reduce consumer bills.
- Vietnam - Vietnam will accelerate its shift to ethanol-blended gasoline earlier than previously planned to help curb fossil fuel use, according to a government document.
Market reference lines and commodity markers cited alongside reporting of these measures included a range of energy and agricultural benchmarks. Those markers as recorded in reporting include: CL+4.44% NG-2.61% NFTA+1.37% GPR+2.91% AEZc1+1.24% FUPOc1+0.31% FCPOc1+0.04% +3.93% -1.29% NFMc10.00% UFBc10.00% -3.12% Crude Oil WTI. These markers were presented in the reporting context of market movements during the period of heightened geopolitical risk.
Taken together, the measures described represent a multifaceted policy response designed to protect households, ensure continuity of critical services and stabilise supplies for agriculture, transport and industry. Approaches differ by country depending on the nature of domestic supply chains, fiscal headroom and the structure of national energy systems.
Where export restrictions and stockpile policies are in place, governments have emphasised domestic supply security. Where fiscal space allows, authorities have opted for subsidies, tax relief or direct cash support. In other cases, operational measures such as increasing coal-fired generation, raising nuclear utilisation or activating emergency funds have been used to shore up energy availability.
Readers should note that the list above summarises official announcements and reported measures at the time of publication and does not infer further outcomes beyond those statements and actions.