Governments across Europe and the Balkans are rushing to shield consumers from rising fuel prices as oil climbs above $100 per barrel amid escalating tensions in the Middle East.
The surge in Brent crude has triggered urgent measures, with countries moving to cut taxes and prevent a sharp increase at the pump, as fears grow over supply disruptions and a wider economic shock.
Italy was among the first to act, reducing fuel costs by around 25 cents per liter in an effort to ease pressure on households and businesses already facing rising transport and production costs.
Spain followed with a major €5 billion package approved on Friday, including 80 measures aimed at protecting the economy from the fallout of the Iran conflict. The plan cuts VAT on fuel from 21% to 10%, suspends special hydrocarbon taxes and removes a 5% levy on electricity consumption.
Serbia also stepped in, with President Aleksandar Vučić announcing a 40% cut in excise duties on fuel products. He described the move as “painful for the state” but necessary to prevent further price increases, adding that the country has sufficient reserves to avoid shortages.
The wave of interventions highlights growing concern that the energy shock is no longer a temporary spike but a sustained threat to economic stability, with ripple effects expected across transport, food prices and inflation.
At the same time, the International Energy Agency has called for immediate action to reduce fuel consumption, urging governments to consider speed limits, remote work and fewer flights as short-term measures to ease pressure on global markets.
If tensions in the Middle East continue, more countries are expected to follow with similar steps, signaling a potential shift from market-driven pricing to active government intervention in energy consumption.