BRUSSELS, April 13 (Reuters) - The European Commission wants to let countries unleash more public money to help businesses with fuel and fertiliser bills, it said on Monday, as governments race to
EU to Increase Fuel Subsidies in Response to Iran War Price Surges
EU Measures to Address Soaring Energy Prices
Commission's Proposal for Increased Public Spending
BRUSSELS, April 13 (Reuters) - The European Commission wants to let countries unleash more public money to help businesses with fuel and fertiliser bills, it said on Monday, as governments race to offset the economic shock from soaring prices triggered by the Iran war.
Impact of Iran War on Oil Prices
Oil prices jumped about 6% to more than $100 a barrel on Monday after the U.S. military said it will blockade ships leaving Iran's ports, raising fears of prolonged disruptions to oil and gas shipments.
Broader EU Response and State Aid Rule Changes
As part of a broader package of measures Brussels is preparing to respond to the energy price spike, the Commission on Monday proposed changing EU state aid rules to allow more public spending for industries hit acutely by fuel price increases, including agriculture, road transport and shipping within Europe.
Support for Fuel and Fertiliser Costs
The changes would let governments cover part of the price increase companies have paid for their fuel or fertilisers, versus prices before the U.S.-Israeli war with Iran began on February 28.
Increased Aid for Energy-Intensive Industries
The draft EU plan would also increase, to above 50%, the maximum share of aid that energy-intensive industries can receive to help pay their power bills.
National Responses and Next Steps
Government Measures Across Europe
European governments including Germany https://www.reuters.com/sustainability/boards-policy-regulation/germany-details-fuel-relief-tax-cuts-eu-auto-policy-response-2026-04-13/, Italy, Poland and Hungary have already introduced a raft of funding measures including fuel price caps and tax cuts, to try to contain the Iran war's economic fallout.
Feedback and Implementation Timeline
Governments will give feedback on the EU proposals, before the Commission plans to adopt a final version by the end of the month.
Temporary Nature of the Proposed Changes
The proposed changes would be temporary, introduced specifically to address the energy fallout of the Iran war.
Commission's Role in State Aid Oversight
The Commission vets national governments' state aid to check that it does not distort competition in the EU single market.
(Reporting by Kate Abnett, Editing by Nick Zieminski)
