The government demanded that the European Union lift the ban on Russian gas and oil to mitigate rising prices. Across the Atlantic, the U.S. government has insisted that the increase in energy prices is temporary and that the White House agenda is focused on increasing oil production by approving new drilling permits. The world's largest economy has opted to lift sanctions on Russian oil, modify maritime rules to reduce costs, and release strategic crude reserves. Latin America is not immune. To face the energy crisis, the Brazilian government is implementing a fiscal plan with measures such as the temporary elimination of two taxes on diesel and the delivery of a subsidy to producers and importers of that fuel. The government also defined a tax on fuel exports to stimulate processing in Brazilian refineries and gave new powers to the National Petroleum Agency to monitor excessive price increases by fuel distributors. The plan is accompanied by aid to the most vulnerable families. In Mexico, the government activated the gasoline subsidy, increased fiscal support for diesel, and reached an agreement with companies to set a maximum price for this fuel. The rise in crude oil prices has generated an increase in Mexico's oil revenues, but since the country must import gasoline to meet its demand, the effects of the energy shock affect the North American nation and generate the need for fiscal stimuli to mitigate fuel price increases. On the other hand, Colombia had been progressively reducing the price of gasoline in recent months, as planned. Others, such as Thailand and the Philippines, are in negotiations to acquire Russian oil. To protect its market, China ordered a temporary ban on the export of refined products such as gasoline and diesel. What is happening in Europe and the United States. Spain approved a plan valued at about US$5.7 billion to mitigate the effects of the energy crisis. The package, which will apply until the end of June, includes a reduction in the Value Added Tax (VAT) on gasoline and diesel, a cut in the special tax on hydrocarbons, and reductions in electricity tariffs through the decrease of specific taxes affecting the sector. Other measures include a cut in the consumption tax for natural gas, pellets, and firewood, as well as direct aid for transporters, livestock farmers, fishermen, and farmers, and a freeze on the maximum selling price of butane and propane. The German government opted to regulate the market rather than deliver direct subsidies, presenting a law so that gas stations can only raise prices once a day. On the other hand, it ruled out the idea of buying Russian gas again. Italy, for its part, plans to use the additional VAT collected from the rise in fuel prices to compensate consumers and sanction companies that take advantage of the crisis to increase their profit margins, while Portugal announced a temporary and extraordinary reduction in the diesel tax. Hungary set a price cap on gasoline and diesel and announced it would release part of the state reserves to guarantee supply. The measure caused gigantic increases in gasoline and diesel prices and a wave of protests. Under pressure, the government agreed to incorporate some compensation and social support measures, but in the current scenario, no measures have been announced to mitigate the effects of the global energy crisis. And in Chile, the government advanced a week ago that the country would experience a historic increase in the value of energy of more than 30% in gasoline and over 60% in diesel. The announcement caused thousands of motorists to take to the streets and collapse gas stations to fill their tanks. In the midst of harsh criticism and protests, the authorities reaffirmed their decision, although they presented a package of palliative measures that was approved by Congress. The measures include a freeze on public transport fares in Santiago, aid for some transporters, and a subsidy for the price of kerosene (paraffin) for the next few months. The package left out gas and did not include aid for the transport sector. has temporarily suspended sanctions applied to certain Iranian and Russian oil shipments, so refineries suffering from supply shortages can buy them. We show you a panorama of what some selected countries are doing to face the crisis. Asian countries. Asia is particularly exposed to the blockade of the Strait of Hormuz. Last year, almost 90% of all the oil and gas that passed through the waterway was destined for the region. The Philippines imports about 98% of its crude from the Persian Gulf, and the conflict has had far-reaching repercussions in the country, affecting everything from the transport sector to the price of rice. The price of gasoline and diesel has skyrocketed to more than double its pre-war level. The government declared a national energy emergency, citing the 'imminent danger' the conflict in the Middle East represents for the country's fuel supplies. The emergency declaration allows it to manage the movement, supply, distribution, and availability of fuel, food, medicine, and other essential goods. Since the outbreak of hostilities, the government has granted subsidies to transporters and implemented a four-day work week for public officials to save fuel. Sri Lanka declared all Wednesdays a holiday for public institutions, while Thailand and Vietnam have asked their citizens to work from home in an attempt to save fuel. Even Thai officials have had to suspend foreign travel and use the stairs instead of elevators. Other countries like Pakistan announced the closure of economic activities at certain times and asked those who can to work from home. Countries like Japan and South Korea, which heavily depend on the oil and gas passing through the Strait of Hormuz, have also directly suffered the consequences of the conflict. Japan is releasing more oil into the market, and South Korea announced that the government will lift limits on coal-fired power generation capacity and raise the utilization rate of nuclear power plants to 80%. However, the government warned that if international fuel prices continue to rise, domestic prices would have to be adjusted, a decision not easy to make in the middle of a presidential campaign. The current scenario has presented great difficulties for a government that decided to end fossil fuel subsidies. Argentina has not yet announced measures to mitigate the effects of rising prices, nor has Ecuador, where the government eliminated the diesel subsidy in September of last year and established a price band system that has been in effect since December. Another country that has not announced mitigation measures for the effects of the war is Bolivia. Although in Chile the value of fuels is set by the market, the country had a price stabilization mechanism that was modified by the current government. The increase in the value of fuels represents the biggest increase since the 1970s. India has taken measures such as cutting the supply of liquefied gas destined for industry so that households have enough gas for cooking, while Vietnam resorted to its fuel price stabilization fund to cushion price increases. Some countries have had to ration fuel to prolong the duration of their reserves, as is the case with Sri Lanka. Unfortunately, as the conflict shows no signs of ending, the chances of that happening do not seem so distant now. Governments around the world are releasing a record 400 million barrels of oil from their strategic reserves to the market, and the U.S. government ended fuel subsidies in December last year to contain the fiscal deficit. India has taken measures such as cutting the supply of liquefied gas destined for industry so that households have enough gas for cooking, while Vietnam resorted to its fuel price stabilization fund to cushion price increases. Some countries have had to ration fuel to prolong the duration of their reserves, as is the case with Sri Lanka. Unfortunately, as the conflict shows no signs of ending, the chances of that happening do not seem so distant now. Governments around the world are releasing a record 400 million barrels of oil from their strategic reserves to the market, and the U.S. government ended fuel subsidies in December last year to contain the fiscal deficit.
