European governments take steps to tackle surging fuel costs

Soaring oil and gas prices linked to the war in Iran are rippling through global markets, piling pressure on governments to shield households from the fallout.

The Government says it is preparing an “appropriate intervention” to curb rising fuel costs, with measures due to be finalised at the next Cabinet meeting on Tuesday.

How are other nations stepping in to support families and businesses?

Here’s a snapshot from across Europe.

On Monday, UK Prime Minister Keir Starmer unveiled a £53 million (€61m) package for “vulnerable customers”.

The UK government says the aid targets low‑income households in rural areas—particularly in Northern Ireland, where a larger share of homes rely on heating oil.

UK Prime Minister Keir Starmer’s £53m package is aimed at ‘vulnerable customers’

Northern Ireland will receive £17m (€20m), England £27m (€31m), Scotland £4.6m (€5.3m) and Wales £3.8m (€4.4m).

Ministers have also confirmed that energy bills will be capped until the end of June.

Hungary

Hungary has rolled out one of Europe’s most forceful interventions so far.

Petrol is capped at 595 forints (€1.52) per litre and diesel at 615 forints (€1.57).

Analysts say the move may be aimed at shoring up support ahead of pivotal elections next month, with polls indicating Prime Minister Viktor Orbán faces a hard fight to keep power after 16 years.

Orbán has also urged the European Union to suspend sanctions on Russian energy—a call most EU leaders have rejected.

Greece

Last week, Greece imposed a three‑month cap on profit margins for fuel and selected supermarket goods.

The rules limit service‑station prices to no more than 12 cents per litre above wholesale petrol and diesel, while supermarkets face fines of up to €5m if profit margins exceed the 2025 average.

Announcing the measures, Development Minister Takis Theodorikakos said: “Profits are legitimate but profiteering is not”.

France

Despite mounting political pressure, the French government says budget constraints mean it is not currently considering a new consumer “price shield”.

Energy major TotalEnergies, however, has set a cap of €1.99 per litre for petrol and €2.09 per litre for diesel, citing “exceptional market volatility”.

Budget limits mean the French government says it is not weighing additional consumer measures

The government also plans checks at 500 service stations to “ensure listed prices match those actually charged”.

Germany

Germany is moving to restrict how often fuel retailers can raise prices, under plans approved by cabinet on 17 March.

From April, stations may increase prices only once per day, at a fixed time of 12pm.

Companies that breach the rules could face fines of up to €100,000.

A windfall tax on oil companies is also under consideration.

Portugal

Portugal’s government yesterday approved a bill allowing it to temporarily cap electricity prices for households and most businesses.

The trigger would be retail prices rising by more than 70% or exceeding €180 per megawatt-hour. Yesterday, the price was about €37.6 per MWh.

Recent days have seen diesel and petrol prices displayed at a Lisbon service station

Portugal is less dependent on natural gas for power generation than many European peers.

In the first two months of the year, roughly 79% of the country’s electricity consumption came from renewable sources, official data show.

Spain

Spain is expected to unveil emergency measures later today to counter the economic impact.

Prime Minister Pedro Sánchez has also confirmed a delay to the presentation of Spain’s annual budget—previously due at the end of the month—citing the “urgent matter” of the war.

Read more: Why is diesel so expensive right now?