Factbox-Governments worldwide shield households from rising energy costs
Government Responses to Rising Energy Costs
June 11 (Reuters) - Governments worldwide are trying to shield consumers from soaring energy costs resulting from the U.S.-Israeli war on Iran and the near-closure of the Strait of Hormuz.
Here's how different countries are responding:
Argentina
Tax Adjustments
** Argentina's government partially increased fuel taxes while postponing further increases until June, according to a decree.
Australia
Fuel Release and Public Transport Initiatives
** Australia is releasing petrol/gasoline and diesel from domestic reserves to ease shortages affecting rural supply chains, mining and agriculture.
** Its prime minister has encouraged citizens to use public transport.
Austria
Petrol Price Brake Measures
** Austria's coalition government in March introduced a "petrol price brake", an inflation-fighting measure aimed at cushioning consumers from the rise in oil prices caused by the Iran war. It said on May 30 it will further shrink the brake.
Bangladesh
External Financing and Price Increases
** Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports.
** The country on June 1 raised retail fuel prices for the second time in six weeks, increasing petrol and kerosene prices by 5 taka ($0.04) per litre in a move that could add to inflationary pressures in the import-dependent economy.
Brazil
Subsidies and Tax Reductions
** The Brazilian government announced measures including subsidies for diesel and liquefied petroleum gas, as well as lower taxes on jet fuel and biodiesel.
Testing and Price Control Initiatives
** Brazil's government is looking at ways to accelerate testing of higher biodiesel blends in diesel.
** Brazil plans to take action to curb the conflict's effect on fuel prices for as long as it continues, Finance Minister Dario Durigan said on June 9, adding that measures already implemented would be renewed "carefully."
China
Energy Security and Export Controls
** China's top leadership pledged to strengthen the country's energy security while pursuing rapid technological development and greater self-sufficiency.
** In mid-March, Beijing tightened restrictions on exports of most fertiliser products to protect its farmers.
** The country on May 27 issued export quotas for urea fertiliser, a move that could help ease soaring global prices for one of the world's most widely used crop nutrients after supply disruptions linked to the Iran war.
Egypt
Loans and Consumption Reductions
** Egypt and the International Islamic Trade Finance Corporation signed a $1.5 billion loan agreement on May 13 to support food and energy security in the North African country.
** The country will slow down large state projects that involve high fuel and diesel consumption for at least two months, while fuel allocations for all government vehicles will be cut by 30%.
** Egypt has capped the price of unsubsidised bread sold in private bakeries.
Ethiopia
Fuel Subsidies
** Ethiopia has increased fuel subsidies.
European Union
Subsidies and Strategic Reserves
** The European Union will let governments spend more on subsidising companies affected by soaring fuel and fertiliser prices.
** The European Union is considering requiring countries to hold stockpiles of jet fuel and potentially redistribute it based on regional needs and shortages.
** The European Commission has set out plans to cut electricity taxes and coordinate the summer refill of countries' gas storage.
Greece
Subsidies and Aid Packages
** Greece's prime minister said in March the country would offer subsidies for fuel and fertilisers and ferry ticket discounts worth a total €300 million ($346 million) in April and May to shield consumers and farmers.
** Athens has announced €500 million in extra aid to households and farmers struggling with the impact of the Iran war after a higher primary budget surplus for 2025 offered headroom for fresh support.
India
Supply Restrictions and Conservation Efforts
** India has barred piped natural gas customers from buying LPG cylinders. It has also cut LPG supplies to some industries.
** Prime Minister Narendra Modi has urged citizens and businesses to conserve fuel and revive work-from-home practices to cut petrol and diesel consumption.
** India further raised a windfall tax on exports of diesel and aviation turbine fuel to ensure adequate domestic supply.
Indonesia
Energy Price Controls and Production Increases
** Indonesia announced a slew of measures intended to counter soaring energy prices, including limiting fuel sales and implementing a "work from home" policy for civil servants.
** President Prabowo Subianto wants to increase the country’s coal production, and the government is considering a windfall tax on exports.
Biodiesel Programme and Price Adjustments
** Indonesia will start implementing the B50 biodiesel programme on July 1. B50 - a blend of 50% palm oil-based biodiesel and 50% conventional diesel - is part of a government programme to mitigate Iran war risks.
** Indonesian state firm Pertamina has raised some fuel prices by almost a third in the first increase since the Iran war began. The finance minister said there would be limited impact on inflation amid investor concerns about government spending.
Italy
Excise Duty Cuts and Jet Fuel Production
** Italy extended a cut in excise duties on fuels, with the extension focusing more on diesel than on petrol.
** Senior officials representing the country's fuel producers and airport operators said Italian refineries have ramped up jet fuel production this year, reducing the risk that the Iran war could trigger shortages for the airline sector.
Japan
Relaxed Rules and Subsidies
** Japan said it will relax rules for the fiscal year that began in April to increase the use of coal-fired power plants. The country has also opened up its oil stockpiles, rolled out gasoline subsidies, and is seeking energy supplies beyond the Middle East.
** The country plans to increase imports of intermediate chemical products such as plastics as it faces tighter naphtha supplies due to the conflict.
** Japan's industry ministry said the benchmark for calculating gasoline price subsidies will switch back to
