KUALA LUMPUR, May 20 — Countries around the world are trying to shield consumers from soaring energy costs resulting from the United States (US)-Israeli war on Iran.
Here is how different countries are responding:
Argentina
Argentina's government partially increased fuel taxes while postponing further increases until June, according to a decree.
Australia
Australia is releasing petrol/gasoline and diesel from domestic reserves to ease shortages affecting rural supply chains, mining, and agriculture. Prime Minister Anthony Albanese has encouraged citizens to use public transport.
Bangladesh
Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports.
Brazil
The Brazilian government announced measures, including subsidies for diesel and liquefied petroleum gas (LPG), as well as lower taxes on jet fuel and biodiesel. Brasília is looking at ways to accelerate testing of higher biodiesel blends in diesel.
China
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.
Egypt
Egypt and the International Islamic Trade Finance Corporation signed a US$1.5 billion (RM5.96 billion) loan agreement on Wednesday to support food and energy security in the North African country.
Cairo 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 per cent. Similarly, it has capped the price of unsubsidised bread sold in private bakeries.
Ethiopia
Ethiopia has increased fuel subsidies.
European Union (EU)
Brussels will let governments spend more on subsidising companies affected by soaring fuel and fertiliser prices. The bloc is also considering requiring countries to hold stockpiles of jet fuel and potentially redistribute it based on regional needs and shortages.
The European Commission set out plans to cut electricity taxes and coordinate the summer refill of countries' gas storage.
Greece
Prime Minister Kyriakos Mitsotakis said the government will offer subsidies for fuel and fertilisers and ferry ticket discounts worth a total of €300 million (RM1.38 billion) in April and May to shield consumers and farmers.
Athens has announced €500 million (RM2.3 billion) in additional aid to households and farmers struggling with the impact of the war in Iran, after a higher primary budget surplus for 2025 provided headroom for fresh support.
Japan
Tokyo 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.
Japan plans to increase imports of intermediate chemical products, such as plastics, amid tighter naphtha supplies due to the conflict.
India
Prime Minister Narendra Modi urged citizens and businesses to conserve fuel and revive work-from-home practices to cut petrol and diesel consumption. New Delhi further raised a windfall tax on exports of diesel and aviation turbine fuel to ensure adequate domestic supply.
The country has barred consumers with piped natural gas from retaining or refilling LPG cylinders and has invoked emergency powers, directing refiners to maximise LPG production, which is widely used for cooking.
Indonesia
Jakarta 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.
The country will start implementing the B50 biodiesel programme on July 1. B50 — a blend of 50 per cent palm oil-based biodiesel and 50 per cent conventional diesel — is part of a government programme to mitigate Iran war risks.
Italy
Rome has extended a cut in excise duties on fuels, with the extension focusing more on diesel than on petrol.
Malaysia
The Treasury has ordered all Federal ministries, departments, and agencies to cut their 2026 operating budgets due to the costs of the war in Iran.
Malaysia will raise spending on petrol subsidies to RM2 billion from RM700 million to maintain the fuel's fixed price.
Putrajaya said it is implementing measures to shore up fertiliser supply amid a domestic shortage.
Mauritius
Port Louis will introduce energy-saving measures. The government has announced restrictions, including curbs on grid power for non-essential uses like decorative lighting, swimming pool heating, and fountains.
Namibia
Windhoek will temporarily reduce fuel levies by 50 per cent for at least three months until the end of June.
The Netherlands
The Hague announced temporary tax breaks to offset rising fuel prices and said it would prepare further measures if the energy crisis worsens.
Nigeria
The country's Dangote refinery, the largest in Africa, has increased exports of gasoline and the widely used chemical urea to African countries hit by supply disruptions caused by the war.
Philippines
The energy market regulator said it had suspended the wholesale electricity spot market across its three grids until further notice due to fuel supply risks and price volatility. Manila plans to curb power bills by boosting coal-fired power generation and regulating electricity tariffs.
The country is also working with Washington to secure waivers to obtain oil from US-sanctioned countries and to guarantee supplies.
Its Energy Ministry said it was activating a ₱20 billion (RM1.28 billion) emergency fund to strengthen fuel security amid oil price volatility.
Poland
Finance Minister Andrzej Domanski said that measures introduced by Warsaw to keep fuel prices under control due to the war in the Middle East may still be in place after May 15 if the situation requires this.
Romania
Bucharest said it will reduce excise tax on diesel by 0.30 lei (RM0.26) per litre.
Serbia
Belgrade will cut excise duties on crude oil by a cumulative 60 per cent, and has extended a ban on crude oil and fuel product exports.
Singapore
The island republic will deliver a support package worth almost S$1 billion (RM3.1 billion), including cash handouts and fuel vouchers, to offset the economic impact of the conflict.
Slovenia
Ljubljana has temporarily limited fuel purchases to tackle shortages at the pump caused in part by cross-border fuelling and stockpiling.
South Korea
Seoul is easing limits on coal-fired power generation capacity and raising nuclear plant utilisation to as high as 80 per cent. It has begun enforcing a ban on naphtha exports to boost domestic supplies.
Spain
Madrid has proposed measures worth €5 billion (RM23 billion) to counter the economic impact of the Middle East conflict on local energy prices.
Sri Lanka
Colombo is relying on US$1.73 billion (RM6.87 billion) in funding from international agencies and India to help it manage the financial impact of soaring energy import prices. The government introduced fuel rationing and declared Wednesdays a public holiday.
Sweden
Stockholm warned of a potential shortage of jet fuel, with the Energy Minister Ebba Busch telling travellers they needed to build some flexibility into their plans where possible. The government will cut fuel taxes and hike electricity subsidies in its spring mini-budget.
Thailand
The Commerce Ministry has tightened controls on crude palm oil exports and on bottled palm oil prices. Bangkok is planning a borrowing guarantee for an oil subsidy fund, along with other support measures, to mitigate the impact of high oil prices.
The Thai Planning Agency said the government will freeze prices of some goods and provide support for farmers.
United Kingdom
London plans to weaken the link between electricity costs and volatile gas prices, saying it would push older wind and solar generators onto fixed contracts to reduce energy bills.
Vietnam
A government document has revealed that Hanoi will switch fully to ethanol-blended gasoline earlier than planned to help curb fossil fuel use.
