The high price of cheap fuel: What new global data reveals about liquid fuel subsidies

The energy crisis of 2022 was triggered by overlapping shocks. Russia's invasion of Ukraine disrupted a major source of global oil and gas. At the same time, fuel demand surged as economies reopened after the COVID-19 pandemic. Supply chains, already under strain, could not adjust fast enough. As a result, liquid fuel prices hit levels not seen in more than a decade. Governments intervened, quickly and often.

But what exactly did they do, and what stuck? Until recently, we could not say for sure. Outdated, fragmented, and costly data made it hard for policymakers to track fuel pricing, compare interventions, or understand their full impacts.

That has now changed. The World Bank Global Landscape of Fuel Subsidies and Price Controls report introduces two open-access global databases that offer a clear view into fuel prices and the policies used to manage them across 154 economies. This work fills a major data gap, giving governments, researchers, and institutions the tools to track trends, evaluate policy effectiveness, and design more resilient energy systems.

The goal is not just transparency. It is smarter decision-making. Fuel pricing policies affect affordability, inflation, and long-term development. They can make or break a country’s ability to deliver reliable energy without draining public budgets. By providing consistent, comparable data, the report supports the World Bank’s broader mission: to expand access to affordable energy, tailored to country-specific needs, and delivered in ways that are financially and environmentally sustainable.

So, what does smarter fuel policy actually look like in practice? The new data offers the first comprehensive picture of how governments responded to the 2022 energy crisis. In that year alone, 132 economies enacted at least one fuel price intervention. Of these, 59 introduced subsidies, 61 reduced taxes, and 41 froze prices, often combining more than one measure at once. While these actions helped shield consumers from sudden price hikes, they also placed strain on public finances and distorted fuel markets.

The map below shows how fuel subsidy policies changed between 2022 and 2024. Some countries pursued reform by phasing out subsidies or using less direct support, while others expanded their interventions. By 2024, the global landscape had shifted, but remained fragmented.

By early 2025, fewer than half of all economies had fully deregulated their fuel markets. Among those still using price controls, nearly half kept prices fixed, or adjusted them only rarely, between 2021 and 2024. This rigidity proved costly. When global prices surged, importers could not recover their costs, shipments stalled, and informal fuel markets grew while public trust eroded.

In contrast, economies with more flexible pricing, updated monthly or weekly, did much better. They responded faster to market shifts and avoided the worst supply disruptions. Pass-through analysis using the new databases confirms that regular price adjustments helped reduce fiscal exposure and keep supply stable, without resorting to large-scale subsidies.

Currency fluctuations added another layer of pressure. As local currencies weakened, the cost of importing fuel climbed. Rather than pass those increases on to consumers, many governments absorbed the difference, creating large, implicit and explicit subsidies. These costs rarely showed up in official budgets, but their fiscal impact was significant and quick to accumulate.

Subsidies took many forms. Some governments provided direct financial support to importers or distributors. Others cut fuel taxes or suspended duties. In countries where state-owned oil companies dominate, governments relied on those firms to shoulder the losses. These approaches offered short-term relief but often lacked transparency and carried long-term fiscal risks.

New data from the  Global Fuel Subsidies and Price Control Measures Database, reveals how governments paid for these subsidies—ranging from direct fiscal transfers to foregone revenue and arrears to oil companies. Fiscal transfers peaked in 2022, reflecting the pressure to shield consumers during the height of the crisis. By 2024, many countries had either withdrawn support or shifted to less direct methods.

One clear pattern emerges: temporary measures often outlast their purpose. Tax cuts introduced in early 2022 remain in place in at least 14 economies. Nineteen economies have kept gasoline prices fixed since 2022. Without clear exit strategies, stopgap policies risk becoming permanent burdens, distorting markets and straining public budgets.

Still, some countries found ways to adapt. Cabo Verde phased out subsidies early, backed by a clear strategy and gradual price adjustments. Albania introduced a crisis-era pricing board, then returned to regular updates as markets stabilized. The Philippines used its existing social protection systems, including targeted cash transfers, to support low-income households directly, rather than holding down prices across the board.

These examples show what makes a difference: preparation, institutions, and clear communication. Countries with targeted support tools and the ability to adjust policies in real time were better positioned to navigate the crisis, and to do so without locking in costly, untargeted subsidies. Those without such systems often defaulted to broad support that consumed public resources and disproportionately benefited wealthier groups.

Approaches varied by region. In the Middle East and North Africa, subsidies were typically delivered off-budget through state-owned firms. In Latin America and Sub-Saharan Africa, direct fiscal transfers and arrears to importers were more common. In Europe and Central Asia, tax relief was the main tool. But across all contexts, one theme stood out: without a defined exit plan, reform was harder, and the fiscal costs were higher.

This level of insight is only possible because of the data. The World Bank’s Global Fuel Prices Database tracks monthly retail prices for eight major fuels from 2015 to 2025. The Global Fuel Subsidies and Price Control Measures Database, captures how prices are regulated, how often they are adjusted, what types of subsidies are in place, and whether markets face issues such as shortages or rationing.

With consistent, comparable data across 154 economies, policymakers now have a way to evaluate strategies, monitor pricing in real time, and assess the fiscal and market impacts of fuel policies. These tools help turn complex energy decisions into evidence-based action, whether to design reforms, benchmark against peers, or avoid unintended consequences.

Fuel pricing decisions carry weight. They affect energy access, inflation, public budgets, and the broader shift to cleaner systems. Navigating these trade-offs requires more than good intentions. It requires reliable data, coordination across institutions, and a clear sense of direction.

That is what the new fuel pricing databases offer. They are available through the World Bank’s Global Fuel Pricing and Subsidy Policies Dashboard, which is free to use, regularly updated, and built from more than 2,000 verified sources.

The energy crisis of 2022 tested subsidy systems and pricing frameworks across the globe. Some held. Others did not. What happens next will matter more. The choices governments make today, about how to support consumers, price energy, and manage reform, will shape future resilience. With better tools now in hand, those choices can be more targeted, more sustainable, and better aligned with long-term development goals.