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UN Says Global Fuel Subsidies Could Top $1 Trillion
UNDP says governments are nearing a breaking point as subsidies, price caps and relief measures strain budgets and could leave 130 million more in poverty.
- A United Nations report released Friday warned that global fuel subsidies could exceed $1 trillion this year as governments struggle to shield consumers from energy price shocks linked to the Iran war.
- Rising borrowing costs, the strongest El Niño on record, and the ongoing Iran war create a three-pronged crisis that strains governments' ability to sustain price caps and tax rebates.
- Without relief measures, 130 million people could fall below the poverty line this year; higher energy prices already triggered protests in at least 10 countries including Syria, Guatemala, the Philippines, France and Portugal.
- Governments are reaching a breaking point and seeking additional fiscal resources from the United Nations Development Programme to maintain subsidies and targeted cash transfers for vulnerable populations.
- Combined shocks are projected to peak in early 2027, with UNDP's chief economist George Gray Molina noting the horizon remains uncertain: "we don't see a very clear pathway out of the three-pronged crisis.
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Fuel Subsidies May Top $1 Trillion As Iran War Drags, UN ...
·New York, United States
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UN Says Global Fuel Subsidies Could Top $1 Trillion
Fuel subsidies amid the oil price shock could exceed $1 trillion this year, the United Nations said, warning that many governments are running out of fiscal resources to sustain subsidies, fuel tax reductions, or price caps. Estimates in a United Nations Development Programme (UNDP) report suggest that at current energy prices, global fossil fuel subsidies could easily surpass $1 trillion this year. “Countries are reaching a breaking point in …
·New York, United States
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Total News Sources15
Leaning Left0Leaning Right4Center2Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
C 33%
R 67%
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