Fuel Subsidies Soar as Oil Prices Hit $110 Amid Middle East Conflict

Global fuel subsidies have surged as oil prices climb due to the Middle East conflict. According to Financial Times analysis of International Energy Agency figures, the number of countries providing fuel subsidies more than doubled to 38 in September from 16 four months earlier.

Energy prices soared to nearly $110 a barrel last week as the spreading Middle East conflict destabilizes energy markets. Fifty-seven governments have lowered energy taxes, up from 40 at the end of April, while the overall number with some form of consumer support has grown from 56 to 94.

Governments are responding to surging energy prices by implementing interventions. France extended support for high-mileage drivers that had been due to be phased out at the end of September. German Chancellor Friedrich Merz has promised to set out proposals to support drivers facing high fuel costs 'very soon.'

In the US, diesel prices reached nearly $6.45 a gallon on Friday, up 70 percent since the February 28 attacks on Iran. President Donald Trump has floated suspending the 18.4 cents per gallon federal gasoline excise tax, though this would require approval from Congress.