BRUSSELS, April 22 (Reuters) - The European Commission will set out plans on Wednesday to cut electricity taxes as it seeks to reduce the price impact of the Iran war and to coordinate the refilling
What Are EU Countries Doing to Counter Rising Energy Prices in 2024?
Measures Taken by European Union Governments to Address Energy Price Increases
BRUSSELS, April 22 (Reuters) - The European Commission will set out plans on Wednesday to cut electricity taxes as it seeks to reduce the price impact of the Iran war and to coordinate the refilling of countries' gas storage ahead of the increase in heating demand later this year.
Below are some of the measures deployed so far by European Union governments since the disruption caused by the Middle Eastern conflict, which erupted at the end of February, began driving up energy prices.
Germany
Price Volatility Controls
Berlin decided not to subsidise prices, but to limit volatility by allowing petrol stations to increase prices only once a day at midday (1100 GMT).
Enforcement and Penalties
They can cut prices at any time. Breaches could be punished with fines of up to 100,000 euros ($108,000).
France
Targeted Support Measures
France's government has opted for support measures strictly targeted at the sectors most in need, marking a sharp contrast with sweeping energy price caps that badly strained public finances after Russia's 2022 invasion of Ukraine.
Fuel Subsidies and Household Benefits
It has announced over 70 million euros in fuel subsidies for the transport, farming and fishing industries for April in addition to a 150 euro benefit for 3.8 million low-income households to help pay energy bills.
Italy
Excise Duty Reductions
The Italian government has set aside some 417.4 million euros ($480.34 million) to cut excise duties on petrol and diesel until April 7, but prices have changed little and industry lobbies are pushing for more effective steps.
Poland
Tax Cuts and Price Caps
Poland announced on March 26 it would cut fuel taxes, cap pump prices and could pursue a windfall tax on energy companies.
Romania
Markup Caps and Export Limits
Romania introduced a cap on markups to fuel prices and put a limit on fuel exports for six months. The measures can be extended by three months at a time. The government also approved a 652 million lei ($147.23 million) state aid scheme to offset part of the cost of gasoline for road transporters of cargo and passengers until year-end.
Spain
Economic Relief Measures
The Spanish government proposed measures worth 5 billion euros ($5.8 billion) to counter the economic impact of the Middle East conflict on local energy prices. The measures, which require approval from parliament, include the reduction of value-added tax on electricity bills to 10%, cutting fuel prices by up to 30 cents per litre and granting a fuel subsidy of 20 cents per litre for the farming and transport sectors, which are some of the most exposed to the sharp price spike.
Hungary
Price Caps and Supply Assurance
Hungary, ahead of elections on April 12, decided to limit fuel prices to shield private consumers and businesses and release state reserves to ensure supply. The cap applied for vehicles registered in Hungary.
Ireland
Excise Duty Reductions
Ireland will cut excise duty by 15 euro cents per litre on petrol and 20 cents on diesel until the end of May as part of a 250 million euro ($290 million) package that took effect from midnight on Tuesday.
(Reporting by Jan Strupczewski; editing by Barbara Lewis)
