European Governments Implement Emergency Measures to Mitigate Fuel Price Crisis

Europe's governments are taking measures to shield their economies and citizens from record gasoline and diesel prices, driven by wars in the Middle East and Ukraine. The Organization for Economic Cooperation and Development (OECD) reports that seven of its member countries, all part of the European Union, are actively working to contain economic damage.

Lithuania has cut train ticket prices in half, while Greece is taxing gambling more to fund public relief efforts. Italy has delayed demolishing coal-fired power plants and reduced paperwork requirements for oil and natural gas projects. The Netherlands increased funding for a program providing free energy-saving services in homes, and Poland proposed heavily taxing the profits of certain fuel producers and sellers.

The European Union imports nearly all its oil and 85% of its natural gas, making it vulnerable to global energy disruptions. EU citizens are spending an extra €203 million ($231 million) per day on diesel fuel alone, according to Transport & Environment. Some governments are spending billions to help their countries weather the current energy crisis.

The European Commission has given member nations temporary discretion to provide state aid to households and energy-intensive industries like agriculture, transportation, and fishing. They also offered limited leeway from EU spending rules for investments that strengthen energy security and reduce reliance on imported oil and natural gas.