Published by Global Banking & Finance Review®
Posted on April 13, 2026
2 min readLast updated: April 14, 2026
Add as preferred source on GoogleThe European Commission has proposed temporary state aid rule changes to let EU countries extend fuel and fertiliser subsidies and raise support levels for energy‑intensive industries, aiming to cushion businesses from sharp price surges caused by the Iran war and US naval blockade, with final adopt
BRUSSELS, April 13 (Reuters) - The European Commission wants to let countries unleash more public money to help businesses with fuel and fertiliser bills, it said on Monday, as governments race to offset the economic shock from soaring prices triggered by the Iran war.
Oil prices jumped about 6% to more than $100 a barrel on Monday after the U.S. military said it will blockade ships leaving Iran's ports, raising fears of prolonged disruptions to oil and gas shipments.
As part of a broader package of measures Brussels is preparing to respond to the energy price spike, the Commission on Monday proposed changing EU state aid rules to allow more public spending for industries hit acutely by fuel price increases, including agriculture, road transport and shipping within Europe.
The changes would let governments cover part of the price increase companies have paid for their fuel or fertilisers, versus prices before the U.S.-Israeli war with Iran began on February 28.
The draft EU plan would also increase, to above 50%, the maximum share of aid that energy-intensive industries can receive to help pay their power bills.
European governments including Germany https://www.reuters.com/sustainability/boards-policy-regulation/germany-details-fuel-relief-tax-cuts-eu-auto-policy-response-2026-04-13/, Italy, Poland and Hungary have already introduced a raft of funding measures including fuel price caps and tax cuts, to try to contain the Iran war's economic fallout.
Governments will give feedback on the EU proposals, before the Commission plans to adopt a final version by the end of the month.
The proposed changes would be temporary, introduced specifically to address the energy fallout of the Iran war.
The Commission vets national governments' state aid to check that it does not distort competition in the EU single market.
(Reporting by Kate Abnett, Editing by Nick Zieminski)
The EU aims to help businesses cope with soaring fuel and fertiliser prices triggered by supply disruptions caused by the Iran war.
Industries such as agriculture, road transport, and shipping are among those eligible for additional fuel and fertiliser subsidy support.
The proposals relax state aid rules, allowing greater public spending to help industries affected by fuel price spikes without breaching competition laws.
No, the subsidies are temporary and intended specifically to address the economic fallout from the Iran war.
The European Commission seeks feedback and aims to adopt the final plan by the end of the month.
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