Global Fuel Crisis Hits Pumps From Warsaw to Jakarta as Oil Tops $100

Oil prices have climbed back above $100 a barrel, triggering a wave of government interventions across Europe and Asia as policymakers try to shield drivers and businesses from rising fuel costs.

Brent crude, the global benchmark, rose above $100 a barrel on Wednesday, capping a monthly gain of about 14 percent — the largest since July [254991]. The increase followed stalled talks between the United States and Iran [254991]. Prices also climbed after reports said Chinese refiners suspended fuel exports for October to protect domestic supplies [254576].

In Poland, the government announced it will impose a windfall tax on fuel companies to curb rising prices at the pump [254929]. A windfall tax is a higher tax on companies that earn unusually large profits. The government says the goal is to limit how much fuel companies can raise prices and protect consumers from further increases [254929].

Indonesia took a different approach, confirming it will not raise prices for subsidized fuels even as global oil prices climb above $107 per barrel [253542]. The Ministry of Energy and Mineral Resources said the government will absorb the rising costs to protect households and businesses. Subsidized fuels include Pertalite, a widely used gasoline, and Solar, a diesel fuel, which are sold below market price to keep transport and food costs down in Southeast Asia's largest economy [253542].

In Turkey, gasoline prices could jump by 12.48 lira per liter if the government does not act before October 1 [253145]. The expected increase comes from a scheduled rise in the Special Consumption Tax on gasoline. Without new regulation by that date, the tax will rise by 10.40 lira per liter. When combined with Value Added Tax, the total increase at the pump could reach 12.48 lira per liter [253145].

The price pressures stem partly from a refining crisis rather than a crude shortage, according to industry observers. "We're solving the crude dilemma, but we are not solving the product dilemma," one analyst said [254598]. Refining is the process of converting crude oil into finished products such as gasoline, diesel, and jet fuel. When refining capacity falls short, fuel prices rise even if crude supply is stable [254598].

Other countries are also feeling the strain. In Germany, a government plan for another fuel tax discount faces scrutiny after a previous "Tankrabatt" (fuel rebate) gave only about 80 percent of its benefit to consumers. The rest — hundreds of millions of euros in taxpayer money — disappeared between the refinery and the gas station [254271]. The same risk exists this time, with oil companies potentially absorbing part of the discount instead of passing it on [254271].

In the Netherlands, motorists are increasingly buying fuel in neighboring countries, the Netherlands' central bank has found. The reason: fuel taxes in the Netherlands are higher than in Belgium and Germany. The bank warns this trend cuts into Dutch tax revenue and could grow if the price gap widens [252453].

In Sweden, the Sweden Democrats are taking action in parliament to stop planned tax increases on petrol and diesel set for this autumn. "If we do nothing, a cost shock awaits," said Oscar Sjöstedt [253921].

The European Commission is considering a pause on part of its major methane regulation, set to start in January, following pressure from rising energy prices and political leaders. French President Emmanuel Macron asked the Commission to postpone new methane reporting rules and soften other fuel-related measures in a September 18 letter [254842].