Commodities April 21, 2026 06:03 AM

Governments Move Quickly to Shield Households from Surging Energy Costs

A patchwork of fiscal measures, production directives and export curbs aim to blunt the fallout of the U.S.-Israeli war on Iran for consumers and key sectors

By Jordan Park
Governments Move Quickly to Shield Households from Surging Energy Costs

Governments across the globe have launched a variety of measures to protect households and critical industries from rising energy prices linked to the U.S.-Israeli war on Iran. Responses range from tax cuts and subsidies to export bans and mandates to boost domestic fuel output, with many nations prioritising household fuel availability, agricultural inputs and power system stability.

Key Points

  • National responses span tax cuts, subsidies, export bans and production directives aimed at keeping household energy affordable - sectors affected include residential consumption, transport, agriculture and power generation.
  • Several countries are prioritising agricultural inputs and food security by releasing fertiliser reserves or protecting domestic fuel supplies used in farming operations - agriculture and food markets are directly impacted.
  • Measures to modify electricity generation mixes, including higher coal and nuclear utilisation, target power system stability and consumer bills - power utilities and industrial consumers are affected.

As energy costs climb in the wake of the U.S.-Israeli war on Iran, national authorities have adopted a wide array of interventions intended to blunt the impact on consumers, farmers, transport networks and industry. The interventions include tax relief, increased subsidies, temporary export controls, production mandates for refiners and shifts in electricity generation policies.


United Kingdom

British authorities are pursuing measures to move older wind and solar projects onto fixed-price contracts. The stated aim is to reduce volatility in consumer electricity bills by changing how some renewable generation revenues are managed.


Netherlands

The Dutch government has announced temporary tax reliefs to offset rising fuel costs and said it is preparing contingency measures should the energy situation deteriorate further.


Sweden

Sweden plans to cut fuel taxes and increase electricity subsidies as part of a spring mini-budget, seeking to reduce the strain that higher energy bills place on households in the wake of the conflict.


India

  • Officials said New Delhi will review fuel exports if necessary to ensure supplies for domestic markets.
  • The foreign ministry said export approvals for neighbouring countries will be granted only when India has surplus volumes to spare.
  • The government has barred consumers who are connected to piped natural gas from retaining, obtaining or refilling domestic liquefied petroleum gas cylinders, while accelerating infrastructure work to promote a switch toward piped gas.
  • Invoking emergency powers, the government has directed refiners to maximise production of LPG, a primary cooking fuel, and reduced sales to industry in order to protect supplies for about 333 million homes with LPG connections.

South Korea

  • Authorities are relaxing constraints on coal-fired power generation capacity and increasing utilisation of nuclear power plants to as high as 80 percent.
  • South Korea is considering additional energy vouchers targeted at vulnerable households.
  • The government has begun enforcing a ban on naphtha exports to strengthen domestic supplies.

China

  • According to four sources, China has imposed a ban on refined fuel exports to head off a possible domestic shortage.
  • Beijing is also releasing fertiliser from national commercial reserves ahead of the spring planting season.

Australia

  • Australia is supplying petrol/gasoline and diesel from domestic reserves to relieve shortages affecting rural supply chains, mining and agriculture.
  • The prime minister cautioned that economic shocks from the war could persist for months and encouraged the use of public transport.

Japan

  • Japan's industry ministry will loosen rules for one year to allow greater use of coal-fired power plants in the fiscal year beginning in April.
  • Tokyo has urged Group of Seven nations and the International Energy Agency to be prepared to take additional flexible steps to stabilise energy markets if the Iran conflict endures.
  • Japan has requested Australia, its largest supplier of liquefied natural gas, to raise output.
  • Faced with tighter naphtha supplies, Japan plans to boost imports of intermediate chemical products such as plastics.

European Union

EU leaders called for temporary interventions to reduce the effects of surging energy prices. Proposals under discussion include cuts to electricity taxes, lower grid fees and coordinated state support as short-term stabilisers.


Bangladesh

Bangladesh is seeking multibillion-dollar external financing to secure fuel and liquefied natural gas imports amid price and supply pressures.


Serbia

  • Serbia will reduce excise duties on crude oil by a total of 60 percent to help calm domestic markets.
  • The government has extended a ban on crude oil and refined product exports to shield its market from shortages and sharp price movements.

Italy

Italian Prime Minister Giorgia Meloni said Rome is weighing cuts to excise duties to ease fuel prices and is prepared to raise taxes on companies that unduly profit from the energy crisis.


Spain

The Spanish prime minister indicated that parliament is expected to vote on cabinet-proposed measures including reductions in fuel and electricity taxes and targeted fuel subsidies for sectors most exposed to energy price spikes.


Argentina

Authorities in Buenos Aires issued a decree delaying the implementation of scheduled increases in taxes on liquid fuels and carbon dioxide.


Cambodia

Cambodia is increasing fuel imports from suppliers in Singapore and Malaysia to compensate for shortfalls from Vietnam and China.


Malaysia

  • Malaysia will increase fuel subsidy spending to 2 billion ringgit from 700 million ringgit to maintain a fixed petrol price.
  • The government is taking steps to stabilise fertiliser supplies amid a domestic crunch.
  • Authorities warned that energy supplies could run out by the end of May and outlined measures including central bank support for companies, efforts to diversify energy sources and inputs, enhanced data monitoring for vulnerable sectors, and a special access pathway for critical medicines and medical devices.

Thailand

  • Thai officials have discussed the possibility of purchasing crude oil from Russia.
  • The government said it would seek to cap domestic diesel prices at 33 baht per litre.
  • The national planning agency announced plans to freeze prices on some goods and to provide support to farmers.

Greece

Greece will provide subsidies for fuel and fertilisers and grant ferry ticket discounts totaling 300 million euros in April and May to protect consumers and farmers, Prime Minister Kyriakos Mitsotakis said.


Romania

Romanian authorities said they would cut the excise tax on diesel by 0.30 lei per litre.


Slovenia

Slovenia instituted temporary limits on fuel purchases to address pump shortages caused in part by cross-border refuelling and stockpiling.


Philippines

  • The energy market regulator suspended the wholesale electricity spot market across all three grids until further notice, citing fuel supply risks and price volatility.
  • To curb rising power bills as LNG costs climb, regulators plan to boost coal-fired generation and exercise control over electricity tariffs.
  • The Philippines is coordinating with Washington to obtain waivers and exemptions that would permit purchases of oil from countries under U.S. sanctions, to help secure supplies.
  • The energy ministry said it would activate a 20 billion peso emergency fund to reinforce fuel security amid continuing oil price volatility.

Vietnam

Vietnam will accelerate its timeline to switch fully to ethanol-blended gasoline as part of efforts to reduce fossil fuel dependence.


Singapore

The prime minister said the government will bring forward certain support measures from this year’s budget to help households and businesses cope with the conflict’s impact.


Indonesia

  • President Prabowo Subianto has called for higher coal production, and the government is considering a windfall tax on exports.
  • Indonesia plans to begin implementing the B50 biodiesel programme on July 1. B50 blends 50 percent palm oil-based biodiesel with 50 percent conventional diesel as part of a broader programme intended to reduce risks linked to the Iran war.

South Africa

South Africa will temporarily lower its fuel levy for one month to prevent further increases in pump prices for April.


Brazil

Brazil has unveiled a new plan to help states subsidise diesel imports. Earlier in March, the federal government eliminated federal taxes on diesel and introduced a 12 percent tax on oil exports.


Egypt

  • Egypt capped the price of unsubsidised bread sold by private bakeries.
  • The government will raise the local wheat procurement price to 2,500 pounds per ardeb, which equals 150 kg, for this year’s harvest to bolster strategic stocks.

Ethiopia

Ethiopia has increased fuel subsidies as part of efforts to moderate domestic energy costs.


North Macedonia

On March 22 the North Macedonian government decided to cut VAT on fuel from 18 percent to 10 percent. Prime Minister Hristijan Mickoski said the measure took effect at midnight on March 23 and will remain in place for two weeks.


Mauritius

Mauritius announced energy-saving rules that restrict grid power use for non-essential purposes such as decorative lighting, swimming pool heating and fountains.


Namibia

Namibia said it will temporarily halve fuel levies by 50 percent for at least three months until the end of June to shield consumers from rising pump prices.


Nigeria

Africa’s largest refinery, the Dangote facility, has increased exports of gasoline and urea to other African countries affected by supply disruptions linked to the war.


Sri Lanka

Sri Lanka will impose additional fuel-rationing measures intended to shorten queues and secure extra oil supplies, a senior official said.


Poland

Poland is developing measures to lower fuel prices that may include a cut to value added tax, according to its finance minister.


Collectively, these actions illustrate an active global policy response to sudden energy market shocks. Many governments are prioritising household energy affordability and agricultural inputs such as fertilisers. Others are focused on shoring up domestic liquid fuels or electricity generation capacity through production mandates, export curbs or temporary tax adjustments. The mix of fiscal, regulatory and operational steps reflects differing national priorities and resource endowments, and underscores the complexity of balancing domestic security of supply with international market dynamics.

Risks

  • Export bans and restrictions on refined fuels and naphtha could tighten global supply chains, potentially affecting petrochemical and manufacturing sectors dependent on feedstocks.
  • Increased reliance on coal-fired generation and temporary measures to relax environmental rules may raise regulatory and transitional risks for energy and utilities sectors.
  • Fiscal costs from expanded subsidies and reduced fuel taxes could strain public budgets, creating trade-offs for broader economic policy and public spending priorities.

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