Global Fuel Subsidies Surge as Middle East Conflict Drives Oil Prices Higher

Global fuel subsidies have surged as oil prices climb due to the Middle East conflict. According to the International Energy Agency, the number of countries providing fuel subsidies has more than doubled from 16 in May to 38 at the start of September.

Oil prices soared to nearly $110 a barrel last week as the spreading 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.

France extended support for high-mileage drivers that had been due to be phased out at the end of September. German Chancellor Friedrich Merz 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 floated suspending the 18.4 cents per gallon federal gasoline excise tax.