The war in is prompting many countries to activate a variety of measures to limit the economic consequences for their citizens, from reducing the price of to encouraging teleworking.
Taxation and direct aid
To prevent a spike in oil prices from crippling the economy, some governments intervene directly in energy prices.
Spain has unveiled a €5 billion plan that includes VAT cuts and discounts of up to 30 cents on the price of a liter at the pump. In Italy, a legislative decree reduced the price of fuel by 25 cents per liter. Similar measures to reduce excise duties on fuel are being implemented in Portugal and passed in Sweden.
Fuel price caps were imposed by Croatia, Hungary, South Korea and Thailand immediately after the outbreak of war, with Israel and the US striking Iran on February 28.
Vietnam abolished tariffs on fuel imports until the end of April.
Japan, for its part, activated an emergency program under which it subsidizes refiners to hold gasoline at 170 yen, after a record high of 190.8 yen (1.04 euros) per liter in mid-March. In Taiwan, an absorption mechanism covers 60% of the price increase.
Earlier today, China announced it was limiting price increases to relieve consumers.
Morocco introduced emergency aid for road hauliers.
Brazil also announced temporary measures, notably the temporary removal of taxes on diesel, which powers most trucks in the country.
Germany has banned gas stations from increasing the price more than once a day.
Stocks and movements
War forces changes to secure strategic supplies but also modifies normal modes of transportation.
The 32 countries of the International Energy Agency, including those of the G7, coordinated the historic release of their strategic reserves to increase oil supply and hold down prices.
Bangladesh imposed fuel rationing in order not to deplete its reserves. Egypt, for its part, has limited non-essential movements of government members and is reviewing its fiscal priorities.
The Philippines has reduced ferry services in some areas. The authorities have announced a series of fare increases in all local transport.
India, the second largest importer of liquefied petroleum gas (LPG), has decided to increase domestic gas production, but is prioritizing supply to households rather than restaurants or hotels.
South Korea’s ruling party has announced it is lifting the 80% limit on coal-fired power generation.
Telecommuting and saving fuel
Some countries rely on changes in work organization and consumption habits.
Thailand has urged civil servants to prefer telecommuting while Vietnam is urging businesses to allow their workers to work from home. Indonesia is considering mandating one day of telecommuting a week for civil servants to save fuel.
In Thailand, moreover, the thermostat in public buildings should be set to 26 degrees Celsius. Egypt has reduced public lighting at night to save electricity. Vietnam promotes the use of bicycles and public transport for commuting. The Philippines instituted a four-day work week for civil servants.
In Bangladesh, to reduce electricity consumption in universities, the authorities closed them earlier than usual for Ramadan. This year there were no festive illuminations for Eid al-Fitr (the end of Ramadan), nor will streets and buildings be illuminated for the country’s independence anniversary.
The issue of the use of Russian oil is still under discussion, following the US decision to ease sanctions on Russian oil from mid-March.
