Fuel subsidies may top US$1 trillion as Iran war drags on: UN study
The analysis finds that the number of countries deploying different relief measures nearly doubled between April and September
Fuel subsidies may surpass US$1 trillion this year as the Iran war persists, according to a United Nations study. Governments worldwide are grappling with the challenge of shielding consumers from higher energy costs stemming from the conflict and other crises. The UN Development Programme (UNDP) report warns that sustaining global policy interventions to alleviate the impact of soaring food and energy prices will become increasingly difficult due to higher borrowing costs and an anticipated El Nino event, which could be the strongest on record.
The next few months are critical for governments utilizing price caps, subsidies, and tax rebates, as oil prices near $100 a barrel and strained budgets face additional pressure. UNDP chief economist George Gray Molina emphasized the uncertainty surrounding the horizon, citing the intertwined crises of the Iran war, borrowing costs, and the El Nino phenomenon.
If governments had not implemented relief measures, an additional 130 million individuals could have slipped below the poverty line of $6.85 a day this year, the report highlighted. The prevalence of protests and social unrest in at least 10 countries, including Syria, Guatemala, the Philippines, France, and Portugal, was reported in September, with higher energy prices cited as a contributing factor.
A separate UNDP survey of 26 offices worldwide found that 25 of them anticipate the Middle East crisis will remain a priority or intensify within the next six months, with all agency locations predicting the worst is yet to come.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
