Oil Price Surge Triggers Global Fuel Subsidies and Tax Cuts

The ongoing Middle East conflict has sent oil prices soaring to nearly $110 a barrel, prompting governments worldwide to introduce fuel subsidies and tax cuts to shield consumers from the rising costs.

A total of 38 countries are now providing some form of consumer support, more than double the number just four months earlier, according to International Energy Agency figures analyzed by the Financial Times. This includes 57 governments that have lowered energy taxes, up from 40 in April, while a total of 94 governments offer some type of consumer assistance.

In Europe, France and Germany are among the countries implementing measures to ease fuel costs for drivers. French authorities have extended support for high-mileage drivers set to expire at the end of September, while German Chancellor Friedrich Merz has pledged to unveil proposals soon to help motorists facing high fuel prices.

In other regions, US diesel prices have reached nearly $6.45 per gallon, a 70% increase since February's attacks on Iran. President Donald Trump has floated suspending the federal gasoline excise tax of 18.4 cents per gallon, although this would require congressional approval.