Overview
Governments around the world have enacted a variety of interventions intended to blunt the impact of sharply higher energy prices attributed to the U.S.-Israeli war on Iran. The policy toolkit being used is broad: tax cuts and temporary relief measures on fuels and electricity, limits on exports of refined products and fertilisers, mandates to boost domestic output of key fuels and feedstocks, and adjustments to the operation of power systems to increase available generation.
United Kingdom
Britain is pursuing regulatory change aimed at reducing consumer electricity bills by mandating older renewable facilities - specifically wind and solar installations - to move onto fixed-price contracts. The measure is intended to bring more predictable, and potentially lower, revenue for suppliers and lower costs for end users through contract restructuring.
The Netherlands
The Dutch government has put in place temporary tax breaks to offset rising fuel prices for consumers. Officials also stated that they are preparing additional measures that could be deployed if the energy situation deteriorates further, signalling readiness to expand intervention should market conditions worsen.
Sweden
In a spring mini-budget, Sweden plans to reduce fuel taxes and increase electricity subsidies as part of efforts to ease higher household energy bills that officials link to the war. The twin measures target both transport fuel costs and household electricity expenditure.
India
Indian authorities have urged motorists not to engage in panic buying, saying there is currently no plan to raise pump prices for diesel or gasoline, according to a government official. At the same time, New Delhi has increased a windfall tax on exports of diesel and aviation turbine fuel to safeguard domestic availability. The government has also barred households with piped natural gas from retaining or refilling LPG cylinders and invoked emergency powers to direct refiners to maximise LPG output, reflecting the fuel's widespread use for cooking.
South Korea
South Korea is adjusting its power supply mix by relaxing limits on coal-fired generation and by moving to raise nuclear plant utilisation, with utilisation levels targeted as high as 80%. In addition, Seoul has begun enforcing a ban on naphtha exports intended to boost the availability of that feedstock and related products domestically.
China
Chinese authorities have prohibited exports of refined fuels to pre-empt potential domestic shortages, according to multiple sources. Separately, in mid-March Beijing also imposed bans on exports of certain fertilizers, including nitrogen-potassium blends and specific phosphate varieties, measures that were presented as precautionary steps to protect domestic supply.
Australia
Australia has released gasoline and diesel supplies from domestic reserves to ease shortages affecting rural supply chains, mining and agriculture. The country's prime minister has additionally urged citizens to favour public transport to reduce pressure on fuel supplies.
Japan
For the fiscal year beginning in April, Japan said it would relax rules to allow increased use of coal-fired power plants. The government has also tapped oil stockpiles, introduced gasoline subsidies, and announced efforts to secure energy supplies from sources beyond the Middle East. Facing tighter naphtha supplies due to the conflict, Japan plans to boost imports of intermediate chemical products such as plastics.
European Union
The European Commission has proposed two key measures: plans to reduce electricity taxes and coordination of summer gas storage refills among member states. The EU is also considering a requirement that countries hold jet fuel stockpiles and the possibility of redistributing those stocks to regions facing shortages.
Bangladesh
Bangladesh is seeking significant external financing to secure imports of fuel and liquefied natural gas, reflecting concerns about ensuring adequate energy supplies for domestic use.
Serbia
Serbia will reduce excise duties on crude oil by a cumulative 60% and has extended an export ban on crude and fuel products to protect its domestic market.
Italy
Italian Prime Minister Giorgia Meloni said the government is contemplating cutting excise duties to soften pump prices and has signalled a readiness to levy additional taxes on firms that unduly capitalise on the energy crisis.
Spain
Spain’s government has put forward a package valued at 5 billion euros to offset the economic consequences of the Middle East conflict on local energy costs.
Argentina
Argentina issued a decree to delay the effects of planned increases in taxes on liquid fuels and carbon dioxide, postponing the fiscal impact on fuel prices.
Cambodia
Cambodia is increasing fuel imports from suppliers in Singapore and Malaysia to compensate for shortfalls from Vietnam and China.
Malaysia
Malaysia said it will raise spending on petrol subsidies to 2 billion ringgit from 700 million ringgit in order to maintain the fixed domestic fuel price. The government is also implementing measures to shore up fertiliser supply amid a domestic crunch. Announced actions include central bank support for companies, efforts to diversify energy sources and secure critical inputs, enhanced monitoring of vulnerable sectors, and a special access route for critical medicines and medical devices.
Thailand
Thai officials have discussed the possibility of purchasing crude oil from Russia, and the government has said it will try to cap domestic diesel prices at 33 baht per litre. The Planning Agency indicated plans to freeze prices on certain goods and to provide targeted support for farmers.
Greece
Greece announced fuel and fertiliser subsidies and discounts on ferry tickets worth a combined 300 million euros in April and May to protect consumers and farmers. The government further pledged 500 million euros in additional assistance for households and farmers affected by the Iran war after recording a higher primary budget surplus for 2025.
Romania
Romania said it will cut the excise tax on diesel by 0.30 lei per litre as part of measures to reduce costs at the pump for consumers and businesses.
Slovenia
Slovenia temporarily limited the volume of fuel purchases per customer to mitigate shortages at the pump that were driven in part by cross-border refuelling and stockpiling.
Philippines
The Philippines' energy market regulator suspended the wholesale electricity spot market across its three grids until further notice, citing fuel supply risks and price volatility. Manila plans to curb power bills by increasing coal-fired power generation and regulating electricity tariffs. The country is also seeking waivers from Washington to allow purchases of oil from U.S.-sanctioned sources to guarantee supplies, and the energy ministry said it would activate a 20 billion peso emergency fund to bolster fuel security amid oil price swings.
Vietnam
Vietnam will accelerate a switch to ethanol-blended gasoline by moving fully to such fuel earlier than originally planned, according to a government document, aiming to reduce reliance on conventional fossil fuels.
Singapore
Singapore will implement a support package valued at nearly S$1 billion, combining cash handouts and fuel vouchers designed to help households and businesses offset the economic effects of the conflict.
Indonesia
Indonesia unveiled a broad set of measures to counter rising energy prices, including limits on fuel sales and a work-from-home policy for civil servants. President Prabowo Subianto has pushed to increase the country's coal production, and the government is considering a windfall tax on exports. Indonesia will also begin implementing the B50 biodiesel programme on July 1 - a blend composed of 50% palm oil-based biodiesel and 50% conventional diesel - as part of a strategy to mitigate risks stemming from the Iran war.
Brazil
Brazil said it will announce new measures in the coming days to lessen the economic fallout from the conflict. Earlier in March the government removed federal taxes on diesel and introduced a 12% tax on oil exports.
Egypt
Egypt will slow large state projects that consume high levels of fuel and diesel for at least two months, and cut fuel allocations for all government vehicles by 30%. Cairo has also capped the price of unsubsidised bread sold in private bakeries.
Ethiopia
Ethiopia has increased fuel subsidies as part of measures to support consumers facing higher prices.
Mauritius
Mauritius said it will introduce energy-saving restrictions, including limits on grid power for non-essential uses such as decorative lighting, swimming pool heating and fountains.
Namibia
Namibia will temporarily halve fuel levies for at least three months, reducing them by 50% until the end of June, to shield consumers from higher pump prices.
Nigeria
Nigeria's Dangote refinery - the largest in Africa - has increased exports of gasoline and urea to African markets affected by supply disruptions tied to the war, shipping more product to countries experiencing shortages.
Sri Lanka
Sri Lanka plans to introduce further fuel-rationing measures to shorten queues and secure additional oil supplies, according to a senior official.
Poland
Poland will keep its fuel price-capping measures in place for as long as necessary and intends to phase them out only gradually once wholesale prices show a steady fall.
What these measures target
The collection of policies announced by governments focuses on containing immediate price spikes for households and businesses, maintaining domestic availability of fuels and fertilisers, and stabilising electricity supply. Interventions touch transport fuels, household cooking fuels such as LPG, electricity tariffs and generation, strategic stockpiles for aviation fuel, and industrial inputs like naphtha and fertiliser blends. Several countries are using export restrictions, taxation tools and direct subsidies to influence domestic market conditions.
Policy trade-offs and operational steps
Many of the actions reflect short-term trade-offs: tapping strategic reserves and relaxing generation rules to ensure supply in the near term, while applying fiscal measures such as tax cuts and subsidies to relieve consumers. Other measures seek to redirect domestic output by instructing refiners to prioritise certain products, or by banning exports to keep supplies at home. A number of governments also signalled contingency planning - preparing additional steps that could be implemented if the crisis deepens.
Conclusion
Across regions, governments are using a mix of fiscal, regulatory and operational actions to shield households and key economic sectors from the effects of energy price increases linked to the U.S.-Israeli war on Iran. The mosaic of responses underscores the varied tools authorities can use to address supply risks and cost pressures, with measures tailored to local market structures, fiscal capacity and the specific vulnerabilities faced by consumers and industry.