Gasoline and diesel reached record highs in Germany this April. According to Clever Tanken, average diesel topped €2.43 per liter across Germany’s 100 largest cities, while Super E10 exceeded €2.18. Even after adjusting for purchasing power, these levels are higher than during the 1970s oil crisis.
The International Energy Agency says the current war in the Middle East has produced a larger global supply shock than the 1973 oil embargo, pushing up world oil and liquefied natural gas prices. Releases from national reserves have had only limited impact. Governments worldwide have adopted a variety of measures to blunt the pain at the pump.
Europe
– Germany: The government cut the fuel tax by €0.17 per liter and expects a tax shortfall of about €1.6 billion. Employers are encouraged to pay workers a one-time, tax- and duty-free relief bonus of €1,000 this year.
– Ireland: After large protests, Dublin approved a package worth €0.5 billion. Around 500,000 low-income households will receive a heating subsidy, and taxes of €0.22 per liter on diesel and €0.17 per liter on gasoline are waived until the end of May.
– Turkey: A sliding-scale fuel tax that automatically falls as prices rise has been in place since 2018, offsetting price spikes at the expense of tax revenue. Finance Minister Mehmet Simsek warned the system is only sustainable temporarily if market prices remain elevated.
Asia
– Philippines: More than 90% of the country’s oil comes from the Gulf, and diesel and gasoline prices have doubled since February. The government has so far only suspended the tax on liquefied petroleum gas, reducing the price of an 11-kg cylinder by roughly €0.50.
– Japan: Tokyo capped fuel prices and allocated more than €4 billion to keep average gasoline around €0.91 per liter. Preliminary estimates suggest the budget will last just under three months.
– South Korea: Seoul set a price cap near €1.19 per liter in March and raised it by about €0.14 soon after. The government expects compensation for refineries and wholesalers to cost roughly €3 billion and plans a similar sum to support middle- and low-income households with payments up to about €350 per person.
– China: Less reliant on oil and gas, China has seen only moderate energy cost rises, but state-regulated fuel prices still rose about 30% compared with two months earlier, reflecting global market trends that the state can only partly cushion.
– India: New Delhi cut fuel taxes by about €0.09 per liter (around 10% of the price) and raised export taxes on diesel and jet fuel to retain more supply domestically.
– Pakistan: Authorities ordered employers to have 50% of office staff work from home; civil servants now work four days a week. Government agencies must cut fuel use by 50% for two months among other measures.
Africa
– Kenya: Fuel prices are regulated by a maximum price set by the authority; after keeping prices steady for some time, higher caps were introduced on April 14 alongside a three-percentage-point VAT cut. Gasoline rose about 16% and diesel about 24%, to roughly €1.36 per liter.
– South Africa: A monthly pricing formula tied to world market prices and exchange rates governs pump prices. Since February, gasoline rose about 20% and diesel about 40%. In April the government cut the fuel tax by about €0.16 per liter, bringing gasoline to about €1.27 and diesel to about €1.35 per liter.
– Ghana: The National Petroleum Authority sets a recommended minimum price. Since late February the NPA raised gasoline by 27% to about €1.02 per liter and diesel by nearly 50% to about €1.32. The government has announced plans to reduce the tax burden but has not yet implemented them.
Americas
– Mexico: The government reached an informal agreement with most gas stations on a cap around €1.18 per liter for gasoline and €1.37 for diesel. In return, around €250 million per week is collected via an energy tax to support the sector. Without the deal, prices would be up to 25% higher, the president said.
– Argentina: The market-oriented government limited subsidies but agreed with state oil company YPF to keep fuel prices stable for 45 days after a roughly 15% rise. In exchange, more ethanol may be blended into gasoline and a planned rise in the oil tax is postponed.
– United States: Federal authorities have not intervened to lower gasoline prices after a roughly 35% increase since late February. Some states have suspended gas taxes; for example, Indiana drivers currently pay about €0.04 less per liter.
Across regions, responses range from tax cuts and temporary subsidies to price caps, mandated demand reductions and regulatory interventions. Many measures are short-term and costly to public finances, reflecting the challenge governments face in shielding consumers from global market-driven price shocks.
This article was originally written in German.