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AMMAN — Governments around the world have introduced nearly 900 measures across about 170 countries to contain energy prices since the outbreak of the war in the Middle East, according to a new policy tracker released by the International Monetary Fund (IMF).
The conflict in the Middle East has renewed fears over global energy security, prompting governments worldwide to adopt measures aimed at containing fuel and energy prices.
The IMF said the swift interventions have helped cushion the impact of the latest energy shock on households and businesses, but have also put additional pressure on already strained public finances.
"Energy shocks force policymakers to choose whether adjustment happens through prices or is absorbed by budgets, and the early responses so far show a clear preference for containing prices," IMF economists Era Dabla-Norris, Christian Mumssen, Rodrigo Valdes and Daria Zakharova said.
According to the Fund, almost half of the measures adopted by advanced economies were subsidies to energy producers and distributors, while around one-third involved cuts to fuel excise taxes.
Emerging and developing economies, meanwhile, have relied more heavily on price caps, fuel-pricing formulas and other administrative controls, sometimes combined with rationing measures.
The IMF said that if recent peace efforts lead to a normalisation of trade and oil flows, governments will face the challenge of gradually unwinding support measures while safeguarding fiscal sustainability.
