Global energy prices have surged in recent weeks as conflict in West Asia disrupts key supply routes and raises concerns about availability. Brent crude broke above $100 a barrel after jumping nearly 13% over the past three sessions, extending its recovery.
The rise comes amid concerns about long-term disruptions around the Strait of Hormuz, a critical route for global energy supplies. Tensions around the waterway heightened after Iran briefly opened the Strait of Hormuz on Friday, only to reverse course within hours. Following the announcement, the United States imposed a blockade on vessels entering or leaving Iranian ports.
Shipping activity across the strait has fallen sharply since the start of the Iran conflict. The knock-on effects are causing higher fuel prices in many markets and increasing demand for LPG and other household fuels.
Several countries have already seen increases in petrol, diesel and cooking gas prices, while others are holding rates steady despite rising global costs. Here’s how different countries around the world are responding to the crisis:
United Kingdom
Britain on Tuesday announced plans to weaken the link between its electricity costs and fluctuating gas prices, saying it would seek to move older renewable power generators to fixed contracts to lower consumer bills, Reuters reported.
The UK government said existing low-carbon generators would be offered voluntary long-term fixed contracts rather than fixed prices, so they would not be paid the price of gas. It said it would cover around a third of Britain’s electricity supply.
Sweden
Sweden will cut fuel taxes and increase electricity subsidies in its spring mini-budget as the government seeks to ease household pain from higher energy bills caused by the war, Reuters reported.
The measures come as energy costs continue to rise due to the ongoing conflict, with politicians stepping in to cushion consumers from the impact of increased fuel and electricity prices.
India
India plans to create a financial buffer for petroleum products such as petrol, diesel and LPG (liquefied petroleum gas) to cope with supply disruptions and global price fluctuations, Mint said, citing two people aware of the development.
The reserve would be similar in concept to the Price Stabilization Fund (PSF), which exists to help manage inflation in selected critical agricultural commodities and was set up in fiscal year 2015 (FY15).
Read also | India is following a price stabilization fund for petrol, diesel, LPG
The country banned piped natural gas consumers from withholding or refilling LPG cylinders and used emergency powers that directed refineries to maximize production of LPG, widely used for cooking.
South Korea
Amid natural gas shortages, South Korea has decided to ease limits on coal-fired power generation capacity and increase the use of nuclear plants to 80%, according to Reuters.
In view of the shortages, it also began enforcing a ban on diesel exports to boost domestic supplies.
China
China has cut refined fuel exports to prevent potential domestic fuel shortages, four sources told Reuters.
It also releases fertilizer stocks from national commercial reserves before spring planting.
Australia
Australia is releasing petrol/petrol and diesel from national stockpiles to provide some relief to citizens as shortages hit rural supply chains, mining and agriculture.
The country’s prime minister has urged citizens to use public transport as supplies of petrol and diesel remain limited.
Japan
Japan also plans to relax rules for the financial year that began this month to increase the use of coal-fired power plants amid a crisis in natural gas supplies. The country plans to increase imports of chemical intermediates such as plastics at a time of tighter diesel supplies due to the conflict, Reuters reported.
The Nikkei business daily reported earlier that Japan agreed to import 1 million barrels of crude oil from Mexico for delivery as early as July to diversify its energy sources due to the war between the United States, Israel and Iran.
European Union
As in other countries, European Union leaders have called for temporary measures to mitigate the impact of the sharp rise in energy prices.
Efforts include electricity tax cuts, lower grid charges and government support, which media reports suggest are possible short-term solutions.
Italy
Prime Minister Giorgio Meloni earlier said Italy was considering cutting excise duty to ease pressure on fuel prices.
The country is also set to raise taxes on companies responsible for exploiting the energy crisis, Reuters reported.
Malaysia
Malaysia will increase spending on gasoline subsidies to 2 billion ringgit ($510 million) from 700 million ringgit to keep the fuel price stable. The government said it was also introducing measures to stabilize fertilizer supplies amid a domestic crisis.
Read also | India halts new LPG connections amid war in West Asia
According to Reuters, the government announced some measures, including central bank support for companies, efforts to diversify energy sources and secure inputs, strengthened monitoring of vulnerable sectors and a special access route for critical medicines and medical devices.
Thailand
Thailand has reportedly discussed the possibility of buying oil from Russia, the deputy prime minister’s report cited a Reuters report.
The minister said the government would try to cap domestic diesel prices at 33 baht ($1.02) per liter. Meanwhile, Thailand’s Planning Agency said the government would maintain stable prices for some goods and provide support to farmers.
