Fuel prices hit record highs in Germany in April. Data from Clever Tanken showed average diesel exceeded €2.43 per liter across Germany’s 100 largest cities, while Super E10 topped €2.18. Adjusted for purchasing power, those levels surpass prices seen during the 1970s oil crisis.
The International Energy Agency attributes much of the upward pressure to the war in the Middle East, calling the supply shock larger than the 1973 oil embargo. World oil and liquefied natural gas prices have risen sharply; releases from strategic reserves have had only limited effect. Governments across the globe have adopted a range of short- and medium-term measures to ease the burden on consumers.
Europe
– Germany: Berlin cut the fuel tax by €0.17 per liter, creating an expected revenue shortfall of roughly €1.6 billion. Employers are being encouraged to grant a one-off, tax- and duty-free relief bonus of €1,000 to workers this year.
– Ireland: After large protests, Dublin approved a €0.5 billion package. About 500,000 low-income households will receive a heating subsidy, and excise duties of €0.22 per liter on diesel and €0.17 per liter on petrol were suspended until the end of May.
– Turkey: A sliding-scale fuel tax, introduced in 2018, automatically falls as market prices rise, blunting price spikes but reducing tax revenue. Finance Minister Mehmet Şimşek warned the mechanism is only sustainable for a limited period if high market prices persist.
Asia
– Philippines: The country imports more than 90% of its oil from the Gulf; diesel and petrol prices have roughly doubled since February. So far Manila’s main step was suspending the tax on liquefied petroleum gas, cutting the price of an 11-kg cylinder by around €0.50.
– Japan: Tokyo imposed price caps and earmarked more than €4 billion to keep average pump prices near €0.91 per liter. Early estimates suggest the budget will be exhausted in just under three months.
– South Korea: Seoul introduced a price ceiling 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 for support payments to middle- and low-income households, up to about €350 per person.
– China: Less dependent on oil and gas imports than many countries, China has seen only moderate energy-cost increases; nonetheless, state-guided fuel prices rose about 30% compared with two months earlier, reflecting global market pressure that the state can only partly absorb.
– India: New Delhi cut fuel excise duties by about €0.09 per liter—around 10% of the retail price—and raised export taxes on diesel and jet fuel to keep more supply for the domestic market.
– Pakistan: Authorities ordered employers to have 50% of office staff work from home; civil servants now work four days a week. Government agencies must reduce fuel use by 50% for two months among other conservation measures.
Africa
– Kenya: The price of fuel is set by a regulatory maximum. After keeping caps steady for some time, authorities raised the maximum on April 14 and cut VAT by three percentage points. Gasoline increased about 16% and diesel about 24%, pushing prices to roughly €1.36 per liter.
– South Africa: A monthly pricing formula tied to world markets and the exchange rate determines pump prices. Since February gasoline rose about 20% and diesel about 40%. In April the government cut the fuel levy by roughly €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 has raised gasoline by 27% to about €1.02 per liter and diesel by nearly 50% to around €1.32. Authorities have announced plans to reduce the tax burden but have not yet implemented them.
Americas
– Mexico: The government struck an informal deal with most service stations to cap pump prices around €1.18 per liter for gasoline and €1.37 for diesel. In return roughly €250 million per week is being collected through an energy tax to support the sector. The president warned that without the agreement prices could be up to 25% higher.
– Argentina: The market-oriented government limited broad subsidies but reached an agreement with state energy firm YPF to keep fuel prices stable for 45 days after a roughly 15% increase. In return, authorities will allow more ethanol blending in gasoline and have deferred a planned rise in the oil levy.
– United States: Federal authorities have largely left pump prices to market forces despite roughly a 35% rise since late February. Some states have moved to ease costs locally by suspending state gas taxes; for example, drivers in Indiana currently pay about €0.04 less per liter.
Across regions, governments have deployed tax cuts, temporary subsidies, price caps, rationing or demand-reduction mandates, and regulatory interventions. Most measures are time-limited and expensive for public finances, underscoring how difficult it is to shield consumers from price shocks driven by global markets.
This article was originally written in German.