Finance
Factbox-Governments Worldwide Shield Households From Rising Energy Costs
Published by Global Banking & Finance Review®
Posted on March 20, 2026
4 min readLast updated: March 20, 2026
Quick Summary
Governments worldwide are rolling out diverse measures—including export curbs, subsidies, and boosting domestic production—to shield households from surging energy costs linked to the U.S.–Israeli war on Iran (Strait of Hormuz disruption).
Governments Worldwide Respond to Surging Energy Costs With Key Measures
Global Government Responses to Energy Price Surge
March 20 (Reuters) - Governments worldwide are trying to shield consumers from soaring energy costs resulting from the U.S.-Israeli war on Iran.
Here’s how different countries are responding:
Asia-Pacific Measures
India
India will review its fuel exports if needed to ensure availability in the local markets, a government official said.
India is assessing fuel-supply requests from its neighbours and will approve exports only if it has surplus volumes, the foreign ministry said on Wednesday.
The country has barred consumers with piped natural gas from retaining, obtaining or refilling domestic liquefied petroleum gas cylinders.
It has invoked emergency powers and directed refiners to maximise production of LPG, widely used for cooking. It cut sales to industry to avoid a shortage for 333 million homes with LPG connections.
South Korea
South Korea is easing limits on coal-fired power generation capacity and raising nuclear power plant utilisation to as high as 80%.
It is considering additional energy vouchers to support vulnerable households.
China
China has banned refined fuel exports to pre-empt a potential domestic fuel shortage, four sources said.
It is also releasing fertiliser supplies from national commercial reserves ahead of spring planting.
Australia
Australia is releasing petrol/gasoline and diesel from domestic reserves to ease shortages affecting rural supply chains as well as mining and agriculture.
Japan
Japan has asked Australia, its biggest supplier of liquefied natural gas, to boost output.
Bangladesh
Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports.
Cambodia
Cambodia is importing more fuel from suppliers in Singapore and Malaysia to make up for supply shortfalls from Vietnam and China.
Malaysia
Malaysia will raise spending on petrol subsidies to 2 billion ringgit ($510 million) from 700 million ringgit to maintain the fixed price of the fuel.
Thailand
Thailand has discussed with the Russian government the possibility of purchasing crude oil, a deputy prime minister said on Tuesday.
The minister also said the government would try to cap domestic diesel prices at 33 baht ($1.02) per litre.
The Thai Planning Agency said the government will freeze prices of some goods and provide support for farmers.
Philippines
The Philippines is set to import Russian oil next week for the first time in five years, LSEG, Kpler and OilX data shows and traders said.
It also plans to curb power bills as LNG prices surge by boosting coal-fired power generation and regulating electricity tariffs.
Vietnam
Vietnam will switch fully to ethanol-blended gasoline earlier than planned as part of its efforts to curb fossil fuel use, a government document showed on Friday.
Indonesia
Indonesia's President Prabowo Subianto wants to increase the country’s coal production, and the government is considering a windfall tax on exports.
Europe and the Middle East Responses
European Union
The European Commission, the EU executive, is instructing governments to be flexible when enforcing EU rules on gas imports, given concerns that strict compliance could delay LNG deliveries needed to stabilise supplies.
Serbia
Serbia will cut excise duties on crude oil by a cumulative 60% to calm the local market.
It has also extended a ban on crude oil and fuel product exports to safeguard its market from shortages and price spikes.
Italy
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.
Egypt
Egypt has capped the price of unsubsidised bread sold in private bakeries.
Americas and Africa Initiatives
Brazil
Brazil's President Luiz Inacio Lula da Silva signed a decree to eliminate federal taxes on diesel.
Ethiopia
Ethiopia has increased fuel subsidies.
Reporting and Editorial Team
(Reporting by Katha Kalia, Ashitha Shivaprasad, and Anjana Anil in Bengaluru; Editing by Kevin Liffey, Joe Bavier, Barbara Lewis and Alex Richardson)
Key Takeaways
- •India tightening LPG sales, reviewing fuel exports, ramping up domestic cooking‑gas production to prioritize households
- •South Korea accelerating nuclear reactor restarts and easing coal restrictions to secure power amid LNG supply risks
- •China banning refined fuel exports and releasing fertiliser reserves; Europe urging regulatory flexibility to avoid LNG delivery delays
Frequently Asked Questions about Factbox-Governments worldwide shield households from rising energy costs
1How are governments responding to rising energy costs?
Governments are implementing measures such as subsidies, export bans, fuel price caps, and increasing domestic production to protect consumers from higher energy prices.
2Which countries have banned or restricted fuel exports?
China and Serbia have imposed restrictions or bans on fuel exports to ensure adequate domestic supply.
3What measures is India taking to secure local fuel supply?
India is reviewing fuel exports, restricting domestic LPG cylinder use, maximizing LPG production, and limiting sales to industry to avoid household shortages.
4How is the European Union addressing energy supply issues?
The European Commission is advising flexibility in applying gas import rules to prevent delays in LNG deliveries and stabilize energy supplies.
5What support are vulnerable households receiving?
Countries like South Korea are considering energy vouchers and subsidies to help vulnerable households cope with rising energy prices.
