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Policy Responses to High
Energy and Food Prices

David Amaglobeli, Mengfei Gu, Emine Hanedar, Gee Hee Hong, and
Céline Thévenot
WP/23/74
IMF Working Papers describe research in

progress by the author(s) and are published to
elicit comments and to encourage debate.
The views expressed in IMF Working Papers are
those of the author(s) and do not necessarily
represent the views of the IMF, its Executive Board,
or IMF management.
2023
MAR
© 2023 International Monetary Fund WP/23/74
IMF Working Paper

Fiscal Affairs Department
Policy Responses to High Energy and Food Prices

Prepared by David Amaglobeli, Mengfei Gu, Emine Hanedar, Gee Hee Hong, Céline Thévenot*
Authorized for distribution by Rodrigo Cerda

March 2023
IMF Working Papers describe research in progress by the author(s) and are published to elicit
comments and to encourage debate. The views expressed in IMF Working Papers are those of the
author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: The surge in energy and food prices, which was amplified by Russia’s invasion of Ukraine, has
prompted a flurry of policy responses by countries during 2022. The aim of these policy responses was to
mitigate social and economic impact of higher prices. In this paper we document announcements of policy
measures based on the Database of Energy and Food Price Actions (DEFPA), which was developed based on
two rounds of survey responses of IMF country teams conducted in March/April and June/July of 2022. The
paper also provides discussion on policy trade-offs when considering appropriate policy responses both for
countries with strong and weak social safety nets. Key policy message is that providing targeted support to
households in the form of cash transfers is the most cost-effective way of alleviating the burden on vulnerable
households and have to be preferred over broad-based mechanisms that prevent international prices to pass
through to domestic consumers.
RECOMMENDED CITATION: Amaglobeli, D., M. Gu, E. Hanedar, G. Hong, C. Thévenot, 2023, “Policy
Responses to High Energy and Food Prices”, IMF Working Paper 23/74.
JEL Classification Numbers: H23, H31, H32, E31
Keywords: Energy prices; food Prices; cost of living; social policy
[email protected]; [email protected]; [email protected];

Author’s E-Mail Address:
[email protected]; [email protected]
WORKING PAPERS
Policy Responses to High Energy

and Food Prices
Prepared by David Amaglobeli, Mengfei Gu, Emine Hanedar, Gee Hee

Hong, and Céline Thévenot1
1
The author(s) would like to thank Apostolos Apostolou, Anil Ari, Alberto Behar, Christian Bogmans, Lahcen Bounader, Maureen
Burke, Wala’a El-Barasse, Enrique Flores, Jean-Jacques Hallaert, Salma Khalid, Asao Kohei, Christina Kolerus, Lucy Qian Liu,
Thornton Matheson, Jeta Menkulasi, Nicola Pierri, Rumit Pancholi, Magali Pinat, Alexander Pitt, Ervin Prifti, Natalia Salazar,
Giovanni Ugazio, Nate Vernon, James P. Walsh, Jean-Francois Wen, Reza Yousefi, and many other IMF country teams and
several IMF executive director offices and their authorities for their inputs and helpful comments.
IMF WORKING PAPERS Policy Responses to High Energy and Food Prices
Contents
I. Introduction .................................................................................................................................................... 3
II. Trends in International Energy and Food Prices ....................................................................................... 4
III. Social Impact of High Energy and Food Prices ........................................................................................ 6
IV. Announced Policy Measures and Responses .......................................................................................... 8

A. Pass-through of Energy and Food Prices .................................................................................................. 8
B. Survey of IMF Country Teams on Policy Responses .............................................................................. 10
V. Policy Discussion ....................................................................................................................................... 19

A. Induce Demand and Supply Responses .................................................................................................. 19
B. Reduce Burden on Poor and Vulnerable Households ............................................................................. 21
C. Ensure consistency with other policies, including the need for macroeconomic stability ........................ 24
D. Political considerations may explain the policy responses to limit the pass-through ............................... 24
Annex I. Data Collection and Methodology .................................................................................................... 26
Annex II. List of Measures Announced in Response to higher Energy and Food Prices (January – June
2022) ................................................................................................................................................................... 29
Annex III. Existing Food and Energy Subsidies ............................................................................................. 56
Annex IV. Policy Measures Announced by the UK and France .................................................................... 64

A. United Kingdom................................................................................................................................. 64
B. France ............................................................................................................................................... 65
References ......................................................................................................................................................... 66
FIGURES
1. International Price Developments ..................................................................................................................... 5
2. Share of Food in Consumer Basket and GDP per Capita ................................................................................. 6
3. Share of Various Budget Components in Overall Household Expenditure ....................................................... 8
4. Estimates of Pass-Through of Prices for Fuel, by region .................................................................................. 9
5. Correlation between Domestic and International Food Prices ........................................................................ 10
6. Policy Responses ............................................................................................................................................ 11
7. Announced Measures by Income Group ......................................................................................................... 12
8. Distribution of Announced Policy Measures by Product ................................................................................. 13
9. Targeting of Policy Measures .......................................................................................................................... 13
10. Size and Number of Announced Policies, by Income Group ........................................................................ 14
TABLE
1. Measures Announced by Country and by Type of Measures ......................................................................... 17
INTERNATIONAL MONETARY FUND 2

I. Introduction
The surge in international prices on energy and food, which were amplified by Russia’s invasion of Ukraine,
triggered a cost-of-living crisis, and constituted significant terms-of-trade shock for many countries. Despite
some moderation in prices at the turn of 2023, global prices on main products such as energy and food, which
account for significant shares of household consumption baskets, remain elevated. These developments have
a disproportionate impact on low-income households. During 2022, the shock triggered swift policy actions by
governments with the aim to mitigate the impact on households and firms. Governments with existing broad-
based price subsidies on energy and food continued maintaining these policies, without necessarily
announcing new discretionary actions, leading to higher fiscal costs.
In this paper we document policy actions announced by governments in the first half of 2022 to mitigate the
impact from high energy and food prices on households and firms, with a special attention to fiscal measures.
Analysis is based on a survey of 174 IMF country teams conducted in two rounds in April and June/July of
2022. Over 700 policy announcements are recorded in the Database of Energy and Food Price Actions
(DEFPA). The announced measures included those that are related to revenue (e.g., reduction in excise tax
rate) and expenditure (e.g., cash transfers), below-the-line measures (e.g., loans or guarantees to state-owned
energy companies) and non-fiscal measures (e.g., export bans). The database also records the existing
subsidies for energy and food. To our knowledge, this database has one of the most extensive coverages of
the measures announced at the global scale related to energy and food price surges in 2022, encompassing all
aspects of fiscal and non-fiscal measures.
The database reveals that most countries announced measures aimed at reducing the pass-through of the
increase in international prices to domestic prices. This outcome was often achieved by a reduction in
consumption taxes such as VAT/sales tax and excises or outright announcement of price freezes. The
measures recorded in DEFPA to limit price pass-through are confirmed by an analysis using actual price data,
showing that in many countries the rise in retail prices was less than what would be implied by the rise in
international prices. Moreover, the price pass-through appears to have declined in 2022 compared to the
previous year for all country income groups. While most of the announced measures were untargeted,
advanced economies, especially in Europe, implemented a significant number of cash transfers aimed at
supporting households. Importantly, there was a divergence in terms of the type of shocks that measures
focused on by income group and region. That is, most measures taken by advanced economies tended to
focus on addressing the impact from higher energy prices while the measures taken in other regions and
income groups, such as in Sub-Saharan Africa (SSA), Middle East and North Asia (MENA) and Caucasus and
Central Asia (CCA), mainly focused on responses to higher food prices.
The most appropriate policy is to protect the price signal, while providing targeted support to those who are
most affected. From this perspective, the measures that have been taken to dampen the price pass-through

are suboptimal (Amaglobeli and others, 2022). Allowing domestic prices to rise in line with international prices
sends a signal to both consumers and producers and helps induce demand and supply responses. Policies that
limit the pass-through result in broad-based subsidies, which are costly and provide relief to everyone,
including to those who do not need it. More targeted support to vulnerable households is preferred, especially
in countries with strong social safety nets. Countries with weaker social safety nets can consider alternative
targeting approaches relying, for example, on digital solutions and big data to provide targeted support. It is
also important that policies adopted to tackle the cost-of-living crisis are consistent with other macroeconomic
policies. In current context, excessive fiscal support does not align with the governments’ efforts to achieve
price stability. These are general considerations and country-specific context will determine the most
appropriate policy response for that country.
This paper is organized as follows: in section II we review recent trends in energy and food prices. Section III
discusses the impact that high energy and food prices had on societies across countries, in section IV we
document announcements of policy measures based on DEFPA, and in section V we provide general guidance
to policymakers on how to mitigate the impact on households using fiscal policy.
II. Trends in International Energy and Food

Prices
Buoyed by the recovery in global economy after the Covid-19 pandemic and exacerbated by Russia’s invasion
of Ukraine, international prices on energy had been on the rise (Figure 1a). More recently, the fears of global
economic recession contributed to some reduction in energy prices, which are now below previous peaks.
However, the decline in oil prices has been slower than during 2007-08 oil price shock and the prices remain
elevated (Figure 1b). With the decline in imports of natural gas from Russia, which accounted for about
45 percent of the EU’s total gas imports, the prices for gas and electricity are particularly high in Europe.
International food prices started to rise after mid-2020, driven by a surge in cereal prices and have heightened
concerns over food insecurity in many countries (Figure 1c). The cereals take up a considerable part of
households’ diets and their consumption spending in many developing countries. Russia’s invasion of Ukraine
accelerated the rise in cereal and thereby food prices, as both countries account for significant shares in the
global trade of wheat and maize, and some other food items.1 Since the peak after the war started, food prices,
a prime driver of global inflation in 2022, eased slightly during the last quarter of 2022, in part thanks to the UN-
brokered Black Sea Grain Initiative, an agreement that allowed resumption of Ukrainian grain exports.
Nonetheless, despite the recent decline, which has been relatively slow, food prices remain significantly
elevated compared to their long-term average (Figure 1d). Upside risks to prices over the medium term,
1
Russia and Ukraine account for one-quarter of global wheat, one-seventh of corn, and three-quarters of sunflower oils exports.

including those stemming from climate change, are also significant. Moreover, the elevated levels of prices on
fertilizer, whose production process is heavily energy-dependent, contributes to higher prices (Figures 1e and
1f). The rise in natural gas prices, a major input for the production of some fertilizers, and the disruption in trade
flows, have contributed to higher fertilizer prices. Russia and Belarus account for one-fifth of global fertilizer
exports (one-third of global trade of potassic fertilizers).
Figure 1. International Price Developments

a. International Oil and Gas Prices b. International Oil Prices during the Last Three Peaks
(January 2000 – October 2022)
Crude Oil (lhs) Previous Peak(Crude Oil) Natural Gas,European (rhs) Previous Peak(Natural Gas,European)
2007/8 Peak 20010/12 Peak Current peak
140 80
100
70
120
60 80
100
US Dollars per Million Metric British Thermal Unit

50
60
Peak=100
USD per Barrel
80
40
60
40
30
40
20
20
20
10
0
0 0
Jan-2000 Jan-2002 Jan-2004 Jan-2006 Jan-2008 Jan-2010 Jan-2012 Jan-2014 Jan-2016 Jan-2018 Jan-2020 Jan-2022 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12
Months before/after peak begins
Source: IMF’s Primary Commodity Prices.

Note: Crude oil (petroleum) is the simple average of three spot prices; Brent, the West Texas Intermediate, and the Dubai Fateh.
Natural gas price is Netherlands TTF Natural Gas Forward Day Ahead.
c. International Food Prices d. International Food Prices during the Last Three Peaks
(Index, 2014 – 16 = 100; January 2000 – October 2022)
Food Price Index Previous Peak (Food) Cereals Price Index Previous Peak (Cereals)
2007/8 Peak 20010/12 Peak Current peak
2007-08 World Food 2010-12 World Food Current food 100
Price Crisis Price Crisis price shock
170
150 80
130
60
2014-2016=100
Peak=100
110
40
90
20
70
0
50
Jan-2000 Jan-2002 Jan-2004 Jan-2006 Jan-2008 Jan-2010 Jan-2012 Jan-2014 Jan-2016 Jan-2018 Jan-2020 Jan-2022 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12
Source: UN Food and Agriculture Organization.

Note: Real Food price index 2014–2016=100, weighted average of meat, dairy, cereals, vegetables, oils, and sugar. Cereal price index
2014–2016=100, weighted average of price indexes for wheat, maize, barley, sorghum, and rice maize, barley, sorghum, and rice.

e. International Fertilizer Price Index f. International Fertilizer Prices during the Last Three
(Index, 2010 = 100; January 2000 – October 2022) Peaks
2007/8 Peak 2010-2012 Peak Current Peak
300
2007-08 World 2010-12 World Current food
100
Food Price Crisis Food Price price shock
Crisis
250 256 255
80
200
2014-2016=100
60
Peak=100
150
40
100
20
50
0
0 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12
Jan-2000 Jan-2002 Jan-2004 Jan-2006 Jan-2008 Jan-2010 Jan-2012 Jan-2014 Jan-2016 Jan-2018 Jan-2020 Jan-2022
Source: World Bank, Commodity Price Data

Note: Monthly indices based on nominal US dollars, 2010 = 100 (monthly series are available only in nominal US dollar terms).
III. Social Impact of High Energy and Food

Prices
Soaring energy and food prices raise the cost of living for households and thus reduce their real incomes.
However, the impact of the rise in the cost of living is not uniform, hurting certain income groups across
countries and within countries more acutely than others. Across countries, the budget share allocated to food is
on average higher in low income and developing countries than in emerging or advanced economies (Figure
2). Food consumption accounts on average for about 44 percent (and in some cases more than 60 percent of
household consumption) in low income and developing countries. This compares to 27 percent in emerging
economies and 16 percent in advanced economies.
Figure 2. Share of Food in Consumer Basket and GDP per Capita

(percent, averages by country)
80
Advanced Economies
Emerging Economies
70 Low-income Countries
Share of Food in Consumer Basket (Percent)
60
50
40
30
20
10
0
500 5000 50000
GDP per Capita, constant US$ (2017)
Source: IMF CPI database and the IMF WEO.

Note: Dot sizes represent approximate percentage of population in each household income group within country groupings.

Within countries, food takes up a considerably higher share of household budget for the poorest households
than for those with higher incomes (Figure 3). On average, in emerging and developing countries, households
in the lowest income group spends about three-fifth of its total expenditure on food, compared with about one-
fifth for households in the highest income group. 2 This pattern also holds in advanced economies. In the
European Union, for example, households in the lowest income quintile spend 16 percent of their budget on
food, compared with 12 percent for those in the highest income quintile.3 In the United States, households in
the lowest income quintile spend 27 percent of their budget on food compared with 7 percent among the richest
income quintiles.4 Higher food prices could have more long-run implications. In the absence of policy support,
poor households switch to lower quality staple food, reduce overall food consumption, change intra-household
allocation of resources, disinvest in their children, and cut expenditure on health and education (Ruel and
others, 2010).
The share of energy (electricity, gas, and domestic fuel) tends to decrease in household consumption with the
increase in income (Figure 3). The composition of the energy basket differs by product and across regions
(Coady and others 2015). In low-income developing countries, the share of electricity, natural gas, and fuel for
transport in consumption increases with income levels, reflecting the gaps in access to energy utilities and car
ownership. By contrast, the share of domestic fuel in domestic consumption decreases with income, as this is
the most widespread source of energy for these households. In advanced economies, the pattern is slightly
different. For example, in European countries, the share of spending on electricity and natural gas among
poorer households is on average higher than among richer households while the share of spending on
transport fuels is relatively flat across consumption quintiles (Ari and others, 2022).
2
Four levels of consumption are used to segment the market in each country: lowest, low, middle, and higher. They are based on
global income distribution data, which rank the global population by income per capita. The lowest consumption segment
corresponds to the bottom half of the global distribution, or the 50th percentile and below; the low consumption segment to the 51th–
75th percentiles; the middle consumption segment to the 76th–90th percentiles; and the higher consumption segment to the 91st
percentile and above. A low-income household spends less than $2.97 per capita a day; a high-income household spends more
than $23.03 per capita a day (source: World Bank, Global Consumption Database) (source: World Bank, Global Consumption
Database).
3
Source: Eurostat.
4
USDA, Bureau of Labor Statistics.

Figure 3. Share of Various Budget Components in Overall Household Expenditure

Food Energy Transport Fuel
70% 20% 20%
18% 18%
60%
16% 16%
50% 14% 14%
40% 12% 12%
10% 10%
30% 8% 8%
20% 6% 6%
4% 4%
10%
2% 2%
0% 0% 0%
EME
EME
EME
EME
EME
EME
EME
EME
LIDC
LIDC
LIDC
LIDC
LIDC
LIDC
LIDC
LIDC
EME
LIDC
EME
LIDC
EME
LIDC
EME
LIDC
Lowest Low Middle Higher Lowest Low Middle Higher Lowest Low Middle Higher
Sources: Global Consumption Data, World Bank, circa 2010.

Notes: Bars represent the first and third quartile of the distribution. This means that 50 percent of countries in each
group lie in the orange bar. In LIDC, households in the lowest income group spend on average 62 % of their budget
on food. In emerging markets economies, households in the same income group spend 48 percent of their budget on
food.
IV. Announced Policy Measures and Responses

In this section, we document the change in the retail price pass-through of energy and food prices in 2022
compared to 2021. Then, we introduce the DEFPA survey, an IMF desk survey of the announced government
measures to mitigate the energy and food price surges, and document key take-aways from the survey.
A. Pass-through of Energy and Food Prices
Pass-through of international oil prices to domestic retail prices decreased for all income groups in 2021, with
some heterogeneity observed across countries (Figure 4).5 In the left chart of Figure 4 (Figure 4a), we plot the
pass-through of international oil prices to domestic retail prices from January to April 2022, compared to the
annual pass-through from December 2020 to December 2021. In the right chart of Figure 4 (Figure 4b), we
compare the previous year’s pass-through with the pass-through from January to July 2022. Looking at the
pass-through from December 2020 to December 2021, the pass-through for main fuel products (such as diesel)
has been the highest in advanced economies and the lowest in emerging and developing economies. The
lower pass-through in emerging and developing economies is explained by the prevalence of price subsidies,
especially in the MENA and the SSA.
5
Pass-through of fuel prices is defined, as in Abdallah and others (2020), as the change in retail fuel prices divided by the change in
international fuel prices over the same period with a monthly lag, both expressed in US dollars per liter. Domestic retail prices are
obtained from the Global Petrol Prices Database. Supply cost is obtained from the International Energy Agency. There are three
different international oil prices used depending on the region of the country. A transportation cost of $0.10 per liter is added for all
countries and an additional margin of $0.10 per liter is added to oil-importing countries.

In the first four months of 2022, the pass-through on diesel has been lower, on average, for all country income
groups compared with last year when international prices were also increasing (Figure 4a). Even advanced
economies with liberalized prices have not increased retail prices to the same extent as they did last year.
While the SSA, Caucasus and Central Asia (CCA), MENA and Emerging and Developing Asia (EDA) had
limited pass-through in the first months after Russia’s invasion of Ukraine, these countries have increased their
pass-through in the later survey (up to July) to the level broadly the same as last year (Figure 4b). Given the
prevalence of price subsidies and limited fiscal space, in particular in oil-importing countries, this could indicate
governments’ desire to ease pressures from subsidies. In contrast, advanced economies have had limited
pass-through even further throughout the year compared to the first four months of 2022 and the last year.
Pass-through from international food prices to domestic food prices is typically lower for food than for other
commodities (fuel in particular). In all regions, the domestic food price index was more strongly correlated with
international FAO food price index in 2021 than in 2022 (Figure 5). In 2022, for some groups of countries, such
as advanced economies, SSA and Latin America and Caribbean (LAC) the correlation of domestic food price
index with the international food price index was even negative. The negative correlation may suggest that
policies and/or other country-specific factors (e.g., a good agriculture harvest) may have driven domestic food
prices lower while international prices were on the rise.
Figure 4. Estimates of Pass-Through of Prices for Fuel, by region

A. Pass-Through January-April B. Pass-Through January-July
AE AE
LAC LAC
EDA EDA
EDE EDE
SSA SSA
CCA &MENAP CCA &MENAP
Oil Exporters Oil Exporters
Oil Importers Oil Importers
0.0 0.2 0.4 0.6 0.8 1.0 1.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2
Dec20-Dec21, Average Jan22-Apr22, Average Dec20-Dec21, Average Jan22-Jul22, Average
Source: IMF staff calculations based on the global petrol price database and International Energy Agency. Note: AE =
advanced economy; CCA = Caucasus and Central Asia; EDA = Emerging and Developing Asia; EDE = Emerging
and Developing Europe; LAC = Latin America and the Caribbean; MENAP = the Middle East, North Africa,
Afghanistan, and Pakistan; SSA = Sub-Saharan Africa.

Figure 5. Correlation between Domestic and International Food Prices
AE
CCA
EDA
EDE
LAC
MENAP
SSA
2022 2021
-0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5
Source: IMF staff calculations.
B. Survey of IMF Country Teams on Policy Responses
The desk survey of IMF country teams has been conducted to report discretionary policy measures in response
to high energy and food prices announced since January 2022 (see Annex I).6 The survey also asked whether
or not there were existing energy and food price subsidies. The survey served as the basis for creating the
Database on Energy and Food Price Actions (DEFPA), which covers 174 countries representing 88 percent of
the IMF membership. The country coverage is the highest among advanced and emerging market economies
(90 percent) followed by low-income developing countries (80 percent). In total, the survey includes nearly 750
announced measures for all countries. The survey shows that the largest number of measures in response to
the rise in energy and food prices was announced in advanced economies. From a regional perspective the
coverage is the highest among European and CCA countries and the lowest in EDA.7
The number of measures should also be assessed considering existing price subsidies (Figure 6). For
example, the number of measures in SSA countries is low but at the same time the percentage of countries in
SSA with existing energy or food subsidies is high. Therefore, even if there are no discretionary measures
taken, existing subsidies in place prevent or limit the pass-through from international prices to domestic prices
whereby there is no or less impact of higher international prices on households and companies. However,
maintaining these price subsidies will become more costly. As will be discussed in section IV, this is not the
6
The survey was conducted in two rounds, in March/April 2022 and June/July 2022. A more recent survey was conducted at the
time of publication of this paper.
7
Please see Annex I for the list of countries within each region.

appropriate policy response. In addition to existing subsidies, the ability of a country to implement measures
and fiscal space are also key in implementing measures.
Figure 6. Policy Responses
Source: IMF DEFPA country desk survey.

Note: The boundaries, colors, denominations, and any other information shown on the maps do not imply, on the part
of the IMF, any judgment on the legal status of any territory or any endorsement or acceptance of such boundaries.
Policy Measures by Country Income Group
The survey indicates that about half of the measures were aimed at reducing the pass-through of international
prices to domestic prices. In advanced economies the most announced measures are vouchers and discounts
followed by reduction in consumption taxes such as VAT/sales tax and excises, followed by cash transfers and
price subsidies (Figure 7a). In emerging market economies, the most common measures are direct price
subsidies to energy and food companies followed by a reduction in consumption taxes and cash transfers
(Figure 7b). Reducing customs duties or price freezes are also not uncommon. Except for cash transfers these
are all measures that reduce the pass-through of international prices. The picture is broadly similar for low-
income developing countries with most of the measures focused on announcing (price) subsidies and reducing
consumption taxes and custom duties (Figure 7c). One clear exception with other income groups is that cash
transfers are rarely announced. This is likely related to a lower coverage of social safety nets and capacity
constraints in scaling up cash transfers for the desired groups.

Figure 7. Announced Measures by Income Group

A. Advanced Economies B. Emerging Market Economies C. Low-income Developing Countries
Semi-cash (vouchers & discounts) (Price) Subsidies (Price) Subsidies
Consumption Taxes Consumption Taxes Consumption Taxes
Cash Transfers Cash Transfers
Customs Duties
(Price) Subsidies Customs Duties
Price Freezes
Price Freezes
PIT
Other non-fiscal measures
Semi-cash (vouchers & discounts)
Other below the line measures
Wage bill
Export restriction Other/unspecified Spending
Price Freezes
Other below the line measures Cash Transfers
Other/unspecified Revenues
Other/unspecified Spending Other_btl
Other/unspecified Spending
Pensions Other below the line measures
CIT
Wage bill
In-kind transfers
Pensions PIT
Semi-cash (vouchers & discounts)
Customs Duties In-kind transfers
CIT
Non-tax revenues Other/unspecified Revenues
PIT
Property tax CIT
Wage bill Non-tax revenues Other/unspecified Revenues
0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80
% % %
Source: IMF DEFPA country desk survey. X-axis shows the percent of the count of each measure type by total
number of measures by each income group.
Measures in advanced economies were mainly focused on addressing higher energy prices while measures in
SSA, MENAP and CCA measures were mainly focused on higher food prices (Figure 8). More than 60 percent
of the measures in advanced economies was focused on the increase in energy prices, one third was related to
a general increase in inflation or both energy and food prices and only 5 percent of the measures was food
related only. This is likely due to the fact that food spending accounts for a smaller percentage of household
expenditure in advanced economies. In emerging market economies, LAC, and EDA about half of the
measures related to energy. By contrast, in SSA countries, which account for the large part of low-income
developing countries, more than 50 percent of the measures are related to food price increases, reflecting the
fact that food expenditure amounts to large percentage of household incomes in these countries. In MENA
countries also half of the measures focused on food. One reason why there is less focus on energy in these
countries is the high prevalence of existing energy price subsidies in these countries which limits increases in
international oil price in the first place to domestic prices.
Most measures were untargeted but advanced economies implemented a significant number of cash transfers
targeted to households. Almost 40 percent of all measures are untargeted to any group such as households or
companies. This is explained by the large number of measures that aim to reduce the pass-through from
international prices to domestic prices. All groups in the economy from households to companies benefit from a
limited pass-through of international prices to domestic prices either as a final consumer or by using the good
or service in the production of other goods and services. However, there is some diversity in targeting
depending on income level. For instance, almost half of the measures announced in advanced economies are
targeted towards households either through cash transfers, vouchers and to a less extent through changes in
pensions or the personal income tax. About one third of the measures are untargeted. Whereas in low income
and developing countries almost 50 percent of the measures are untargeted and related to reducing the pass-
through. Measures targeted to households is less than 20 percent of total measures.

Figure 8. Distribution of Announced Policy Measures by Product
LIDC 33 51 16
AE 63 5 32
EME 47 30 23
ED-Europe 52 21 27
AE 63 5 32
LAC 57 26 17
0% 20% 40% 60% 80% 100%
Energy Food Other

SSA 25 53 22
LIDC 2.5
ED-Asia 47 36 16
EME 3.5
MENAP 27 50 23
AE 6.6 CCA 14 71 14
0 2 4 6 8 0% 20% 40% 60% 80% 100%
Average Number of Measures Energy Food Other
Figure 9. Targeting of Policy Measures
LIDC
EME
AE
0% 20% 40% 60% 80% 100%
Untargeted Households Food companies

Other unspecified Other all companies Energy companies
These newly announced measures put an additional pressure on government budgets. In more than half of the
countries, the announced measures cost more than 0.2 percent of GDP on average (excluding existing
subsidies). Energy-related measures are the costliest, in all income groups (Figure 10). More than one-fifth of
countries have announced policy packages in response to energy prices that are above 1 percent of their GDP.

More than half of advanced economies have announced at least three measures aiming at responding to high
energy prices. In emerging market and low-income economies, the median number of announced measures in
response to energy prices is two. Food-related measures have the highest relative cost in low-income
developing countries. They reach more than 0.75 percent of GDP for some of these countries.
Figure 10. Size and Number of Announced Policies, by Income Group

1.4
1.2
Amount of GDP (%)
0.8
0.6
0.4
0.2
0
Both Energy Food Both Energy Food Both Energy Food Both Energy Food All
Advanced economies Emerging Market Low income Developping All countries Total
(32) Economies (50) Countries (28) (110)

Notes: bars reflect the 20th and 80th percentiles of the estimated cost of announced measures with non-missing
values. Dots reflect the median value of the fiscal cost. Dots size represents the number of announced measures of
each type (the largest size represents a median number of measures at 3, intermediate size, at 2, and smallest, at
1). “Both” pertains to measures which cannot be attributed to food or energy response, such as cash transfers
(most of the time) but also measures on pension or personal income tax, for instance.
Policy Measures by Region
While the price shock was global it manifested itself in different ways in different parts of the world. For
example, in Europe the size of energy price shock was unprecedented in size given the decline in Russian
natural gas supplies to about 15 percent of their 2019 levels, corresponding to around one-third of Europe’s
total natural gas consumption. As prices of natural gas and wholesale electricity skyrocketed governments
responded with a combination of limiting the pass-through to consumer prices, and support to households and
firms (see, for example, Annex IV with the discussion of comprehensive policy packages introduced in the
United Kingdom and France). In SSA, the main concern has been with food insecurity due to a sharp rise in
food prices, making food less affordable for the poorer households and disruptions in trade as many SSA
countries depend on imported basic staples, which resulted in the deterioration of access. Various measures
announced in different regions of the world are summarized below:

Europe8
▪ Pricing policies. These included cuts to excise duties and to lesser extent in VAT rates on energy
products (e.g., Belgium, Bulgaria, Finland, Greece, Italy, Lithuania, Netherlands, Romania). General
retail price caps of energy products (France, Hungary, Portugal, Romania, Slovenia, Spain) were also
common.
▪ Support to households. These included cash transfers (Austria, Cyprus, Czech Rep, France, Germany,
Italy, Spain, U.K.), vouchers (Belgium, Croatia, Estonia, Netherlands, Romania, Sweden), and other
forms of subsidies such as energy efficiency grants/subsidies (Lithuania, Luxembourg, Sweden)
exclusively for vulnerable households or more broadly covering all households.
▪ Support to firms. The most common include grants/subsidies/loans to firms in specific industries
(Austria) or all categories (Bulgaria, Greece). Others include liquidity support to energy companies
(Denmark, Switzerland), energy efficiency grants and subsidies (Norway), tax credits for electricity,
gas, and gasoline for selected firms (Italy), and temporary unemployment benefits (Belgium, France,
Germany). Some countries have set up company lists for energy rationing in case of severe shortages
in natural gas supply (Netherlands, Romania).
▪ Windfall taxes. Italy introduced a special contribution on extra profits realized by energy companies’
windfall tax on the extraordinary profits of energy companies. Spain introduced a mechanism in which
large energy companies pay back an amount proportional to the increase in income due to rising
prices.
Sub Saharan Africa
▪ Pricing policies. Measures to reduce pass-through from international prices to domestic prices were
mostly focused on food products. Price freezes and price subsidies are announced in Burkina Faso,
Cote d’Ivoire, Equatorial Guinea, Madagascar, Senegal, and Togo, while Benin, Malawi, Togo,
Tanzania, Zambia, and Zimbabwe reduced custom duties and consumption taxes. Benin, Cote
d’Ivoire, Madagascar, Namibia, Togo, South Africa, and Zimbabwe announced also pricing policies
regarding energy.
▪ Support to households. Cash transfers are announced in Madagascar, Mozambique, Senegal,
Seychelles, and Tanzania. Some countries also increased the public wage bill (DR Congo,
Madagascar, and South Sudan) or lowered the personal income tax (DR Congo and Mauritius).
▪ Support to firms. Most announced measures were in the form of fertilizer subsidies to the agricultural
sector (Benin, The Gambia, Kenya, Niger, Senegal, Tanzania).
MENAP & CCA
▪ Pricing policies. Measure to reduce pass-through of international prices was both focused on energy
(Jordan, Kazakhstan, Oman, Pakistan, Tajikistan, West Bank and Gaza) as food products (Azerbaijan,
Algeria, Iraq, Kazakhstan, Kyrgyz Republic, Morocco, Oman, Tajikistan, Uzbekistan, West Bank and
Gaza).
8
Europe in this section includes advanced and developing European countries.

▪ Support to households. Cash, semi-cash or in-kind - transfers while less in number - were announced
in Djibouti, Georgia, Iran, Iraq, Jordan, Pakistan, and Tajikistan).
▪ Support to firms. Support for firms were announced in a handful of countries (Iran, Kyrgyz Republic,
Sudan, Tajikistan).
LAC
▪ Pricing policies. Most measures were focused on reducing the pass-through of international prices
mainly on energy products (Argentina, Brazil, Barbados, Chile, Costa Rica, Dominican Republic,
Ecuador, Guatemala, Guyana, Honduras, Nicaragua, EL Salvador, Suriname, Sint Vincent, and the
Grenadines). Pricing policies focused on food were announced in (The Bahamas, Colombia,
Dominican Republic, Mexico, Peru, Paraguay, Sint Vincent, and the Grenadines).
▪ Support to households. Cash transfers are announced in Argentina, Brazil, Dominican Republic,
Ecuador, Jamaica, Peru, and Suriname. Argentina, Brazil, and Dominican Republic also announced
semi-cash measures as well as Peru and St. Vincent and Grenadines.
▪ Support to firms. Measures are mainly focused on support for fertilizers and agricultural inputs
(Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Peru and Sint Vincent and the Grenadines).
ED-Asia
▪ Pricing policies. Pricing policies were announced in China, Fiji, Indonesia, India, Sri Lanka, Mongolia,
Nepal, Nauru, Solomon Islands, Thailand, Vietnam.
▪ Support to households. Support to households were announced in China, Indonesia, Sri Lanka,
Malaysia, Nepal, Philippines, Thailand, and Tonga.
▪ Support to firms. Some support measures to firms were announced in China, India, and Nepal.

Table 1. Measures Announced by Country and by Type of Measures
(Measures announced during the first semester of 2022)
to food companies
Other subsidies to
Non-tax revenues
Other/unspecified
Other/unspecified
Export restriction
(Price) Subsidies
(Price) Subsidies
In-kind transfers
incomplete pass
Cash transfers
Custom duties
VAT/Sales Tax
(import tariffs)
all companies
Price Freeze /
Property tax
(vouchers &
companies
discounts)
Semi-cash
Revenues
Other_onf
Spending
to energy
Pensions
Other_btl
Wage bill
Excises
through
PIT
CIT
AE AND X X X X X
AUS X X X X
AUT X X X X X X X X X
BEL X X X X
CAN X X X
CHE X X
CUW X X
CYP X X
CZE X X X X X
DEU X X X X X X X X
DNK X
ESP X X X X X X X X
EST X X X X X
FIN X X X
FRA X X X X X X X X X X
GBR X X X X X
GRC X X X X
ISL X
ISR X X X X
ITA X X X X X X
JPN X X X X X
KOR X X X
LTU X X X X X X X
LUX X X X X X X X X
LVA X X X X
MLT X X X
NLD X X X
NOR X X X X
NZL X X X
PRT X X X X X X X X
SGP X
SMR X X X
SVK X X X X
SVN X X X X X X X
SWE X X X X X
SXM X X
CCA AZE X X X
GEO X X
KAZ X X
KGZ X X X X X X
TJK X X X X
UZB X
ED-Asia CHN X X X X
FJI X
IDN X X X X X X X
IND X X X X
LKA X X X X
MNG X X X X X
MYS X
NPL X X X X X X X X X X X
NRU X X
PHL X X X
PLW X
SLB X X
THA X X X X X X
TLS X
TON X
VNM X
ED-
ALB X X X X
Europe
BGR X X X X X
BIH X X X X X X X X X
HRV X X X X X X X X
HUN X X X
KSV X X X X X
MDA X X X
MKD X X X X X X X X X X X
MNE X X X X
POL X X
ROU X X X X X X X X X
SRB X X X X X X
TUR X X X X X X X X X X X
UKR X X X

LAC ARG X X X X X X
ATG X
BHS X
BOL X
BRA X X X X X X X X X
BRB X X
CHL X X
COL X
CRI X X
DOM X X X X X X X X
ECU X X X X X
GTM X X
GUY X
HND X X X X X
JAM X X X X
MEX X X X X X
NIC X X X
PER X X X X X X
PRY X X
SLV X X X X
SUR X X
VCT X X X X X X
MENAP ARE X X
DJI X
DZA X X X X X X
EGY X X
IRN X X X
IRQ X X X X X X X X
JOR X X
LBN X X
MAR X X
OMN X X
PAK X X X X X
SDN X
WBG X X X
SSA AGO X
BEN X X X X X
BFA X X X
CIV X X X X X
CMR X X
COD X X X
COM X
GAB X X
GHA X
GIN X
GMB X X
GNB X X
GNQ X X
KEN X X
LBR X
LSO X
MDG X X X X X
MOZ X X
MUS X X X X
MWI X X
NAM X
NER X X X
SEN X X X X X X
SLE X
SSD X
STP X X
SYC X
TCD X
TGO X X X X X
TZA X X X X X
ZAF X
ZMB X X X
ZWE X X X

Note: Data labels in the figure use International Organization for Standardization (ISO) country
codes.

V. Policy Discussion
This section lays out the key principles in designing policies in the face of the surge in food and energy prices.
Appropriate policy response to the surge in international prices will be country specific but general principles
apply to all. These policy objectives should be to (i) induce demand and supply responses; (ii) reduce burden
on poor and vulnerable households; and (iii) ensure consistency with other policies, including the need for
macroeconomic stability. The section ends with a discussion on political economy considerations when
designing policy responses. When examining options for government responses, policymakers would need to
be aware of potential policy trade-offs. The strength of social safety net, availability of fiscal space, the nature
of existing domestic price setting mechanisms, institutional capacity, threats of food and energy scarcity, and
potential spillovers on international markets are some of key considerations.
A. Induce Demand and Supply Responses
Allowing the pass-through of international prices to domestic prices is a crucial market instrument to
send signals to both consumers and producers. Higher international prices reflect shortage of supply on the
market relative to existing demand. As supply is relatively inelastic in the short run, the bulk of adjustment
would need to come from the demand side. Price signals are the most effective way to encourage consumers
to reduce consumption. If prices are not allowed to adjust, governments that face rigid supply may need to
resort to costly rationing or face unmitigated supply shortages and an increase in informal (black) market
activity. Empirical evidence suggests that demand response can be sizable. For example, in the case of
energy, cross-country short-term price elasticity of demand has been estimated at -0.21, with the highest
elasticity for gasoline (-0.29) followed by natural gas (-0.18) and diesel (-0.15) (Labandeira and others, 2017).
Long-term price elasticities of energy demand are even greater and are significantly higher in developing
countries Price elasticities of demand for food depends on income and the type of food (Cornelsen and others,
2015, Green and others, 2013). It is larger in low-income countries. For example, price elasticities are the
highest for meat (-0.78) and the lowest for cereals (-0.43) (Green and others, 2013). Demand from poorer
households is more responsive to price changes than higher income households. This is another indication that
higher food prices could have a disproportionately large effect on lower income households. Poor households
respond to higher prices by reducing quantity and quality of their food consumption and cutting health and
education costs (Ruel and others 2010, Green and others 2013).
In the energy sector, the success of demand response will be higher if governments also provide
instruments to consumers that allow them to reduce consumption. In this context, providing incentives to
consumers to become more energy efficient through programs that support retrofitting of buildings and
purchases of energy efficient appliances can be helpful. Moreover, by harnessing digital technologies
governments can increase consumer awareness of own energy use such as through deployment of smart
meters that allow consumers get real-time energy consumption information and incentivize them to save.

Encouraging more competition in the energy market and providing consumers with information that they can
use to make decisions and easily switch suppliers will also be useful.
Countries with no existing price subsidies should allow domestic prices to move in line with
international prices. Introducing generalized prices subsidies that aim to limit the price pass-through to
domestic consumers are not advisable. Measures that prevent domestic prices to adjust (e.g., through price
caps) are fiscally costly because they come either in the form of higher budgetary outlays or foregone revenues
(due to tax cuts or lower profit transfers from state-owned enterprises). A general price subsidy on products
with low differentiation, such as fuel, implies providing relief to all including the most affluent households and
giving up precious budgetary resources at the time when they are most needed. 9 These subsidies crowd out
productive spending such as on social assistance, health, education, and public investments. Price subsidies
could also impose a risk to energy and food security as incomplete compensation of suppliers is often
associated with supply shortages and the accumulation of payment arrears, especially in countries where fiscal
space is more limited, and the institutional capacity is weaker. They can generate negative spillovers to other
countries by inflating international prices. But most importantly, price subsidies counter the main policy
objective of inducing demand and supply response as they encourage overconsumption at the time of
heightened shortages and reduce producer incentives. However, for food, while overconsumption or poorly
targeted subsidies have to be avoided, reducing demand can have adverse consequences on the most
vulnerable (see section III.). In countries with weak social safety nets where the expansion of existing programs
does not provide sufficient protection and where food security concerns are particularly acute, governments
can consider temporary reductions in taxes with clear sunset clauses for staple foods. Import tariff cuts on
necessities, which are less distortionary, would then be preferable. For energy, temporary smoothing of
domestic prices is only warranted if price increases are very high, and governments are not able to mitigate the
impact on the vulnerable through other means.
Governments with existing subsidies can allow a gradual pace of adjustment in domestic prices.
Political economy and social policy considerations may prevent governments in these countries to immediately
let retail prices fully adjust in line with international prices despite a significant rise in fiscal costs. Therefore,
these governments can limit but should not avoid retail price increases. They should also take this opportunity
to remind the public about the costly, distortive, and unsustainable nature of uniform price subsidies and
develop and announce concrete plans to eliminate them over medium term. The pace of elimination of price
subsidies should be higher where fiscal space is more limited, the gap between domestic and international
prices is large and the ability to put in place effective measures to mitigate the impact on vulnerable households
is stronger. Moreover, countries with fuel subsidies could consider differentiating adjustment paths of domestic
prices by type of fuel based on their relative weights in the consumption of different income groups. For
9
Food price subsidy differ from energy subsidy as they often pertain to products that are more extensively consumed by poorer
households due to quality differentiation – such as staple food or types of bread. Therefore, they are effectively more targeted
towards the bottom of the income distribution than energy subsidies. Nevertheless, the deadweight loss of food price subsidies
is expected to be larger than the one for targeted cash transfers that would have a similar policy objective.

example, in some countries, LPG and kerosene are more important for low-income households, which they use
for cooking or heating, and hence could have a slower adjustment path than prices for gasoline and diesel.
Once the domestic price is increased in line with the international price, countries could adopt an automatic
energy pricing mechanism with smoothing that prevents sharp adjustments in fuel prices as a transition to
liberalized pricing (Coady and others, 2012).
Where the magnitude of mismatch between supply and demand is so large that it would imply an
extraordinary increase in prices, some rationing could complement price adjustment. Combining
quantitative controls with price mechanisms can be effective in delivering the needed reduction in demand. For
example, building on past experiences with energy shortages (e.g., Brazil in early 2000s and Japan in early
2011) governments can impose consumption quotes for households and firms (based on previous period
consumption volumes). An upward breach of these quotas could be penalized through fines, while downward
breach could be incentivized through bonuses (see, for example, Maurer and others 2005; and Kimura and
Nishio 2016). Crude measures, such as blackouts, are economically costly and should be used only as a last
resort instrument. As a last resort option, if food security is a concern, food rationing can be implemented
through ration shops (e.g., public distribution system in India, see Gadenne 2018), vouchers or direct food
distribution. However, this may give rise to governance concerns.
Export restrictions, particularly when they are introduced by large exporters, disrupt international trade
and contribute to even higher global prices. Although an export restriction can temporarily increase supply
on the domestic market and limit domestic price surges, it can reduce incentives for domestic production,
create negative spillovers to other countries, and trigger retaliatory actions by trading partners. Export
restrictions on food when they are introduced by countries that have a sizable share of the global food market
can have significant adverse impact on other, particularly low income and food insecurity vulnerable countries.
Ban on exports by one country can also trigger a chain reaction of retaliatory measures further limiting the
global supply. The impact of export bans introduced by a number of countries since the beginning of Russia’s
invasion of Ukraine has led to an increase in prices higher than 5 percent for several international traded food
items (Espitia, Rocha and Ruta, 2022). Previous food price peaks (such as in 1973 and 2008) indicate that
trade barriers are ineffective on average in stabilizing domestic prices, but they do contribute to further
increases in world prices.10 In the long run, export bans may also hurt countries imposing restrictions as they
reduce production incentives and encourage smuggling to countries with higher prices.
B. Reduce Burden on Poor and Vulnerable Households
Providing targeted support through cash transfers, especially in countries where social safety nets are
strong, can effectively alleviate the impact on households most affected by higher energy and food
10
See, for instance, Martin and Anderson 2011.

prices. Countries that are able to systematically identify most-affected households and have in place an
efficient mechanism to deliver social assistance are considered to have strong social safety nets. The strength
of social safety nets stems from the availability of comprehensive information systems, which include universal
and robust identification that is effectively linked to databases with socio-economic information (household
characteristics, employment, and income), and from adequate implementation capacity to deliver benefits to
the intended beneficiaries in a reliable and timely manner. The strength of the social safety net is also
determined by the existence of strong medium-term fiscal frameworks that ensure flexible and sustainable
financing for social assistance programs. Cash transfers are a preferred policy instrument because they are
independent of the consumption of energy or food, do not distort relative prices and are not fiscally costly.
Social protection spending is an effective tool in containing deterioration of food security from rising domestic
food inflation (Bogmans and others 2021). However, tax systems can also be used to provide relief to
vulnerable households, for example, through refundable tax credits.
Countries where social safety nets are not well developed can expand existing programs, use
alternative targeting approaches, and employ digital solutions and big data to provide targeted
support. The existing programs, such as school feeding programs, can be expanded by increasing benefit
levels and coverage as needed to provide some relief to low-income and vulnerable households. In the
absence of sufficient (financial) information about households to perform (proxy) means tested targeting,
governments can employ alternative approaches to targeting, such as demographical/categorical targeting
(age, civil status, gender), geographic targeting, self-selection targeting, community targeting, or proxy-means
testing. There is no single targeting method that is superior, and the choice of targeting mechanism depends on
policy objectives and the institutional capacity of a country (Grosh and others, 2022). Digital tools can be
leveraged to identify eligible beneficiaries, verify their socio-economic information and deliver benefits in the
absence of a delivery infrastructure. For instance, in countries where financial inclusion is relatively low,
benefits can be delivered through Government-To-Person (G2P) mobile payment platforms to mobile accounts.
Digital tools can also speed up beneficiary intake and registration through online applications which could be
complemented with information on individuals’ situation from non-standard sources, such as telecom metadata.
During the Covid many countries enabled digital solutions to quickly scale up their social safety nets. For
example, Nigeria used a new targeting method based on census data and high-resolution satellite imagery to
map the poorest urban areas and target benefits. Brazil implemented a new online registration process, verified
their eligibility through a newly developed analytical database that leveraged existing administrative databases
and provided cash transfers to beneficiaries’ bank accounts including to newly created, free digital savings
accounts. In Togo, the government was able to quickly identify and enroll the vulnerable with the help of
biometric voter IDs and satellite and phone record data and deliver cash transfers through digital G2P platform.
However, these technology-based approaches can lead to exclusion of low-income households that may not
have access to digital tools and/or may be hard to reach through digital mechanisms. Governments could also
consider reducing education, health, or public transport fees if they help in reaching the targeted groups and

can be effectively implemented. All these imply that countries with weaker social safety nets have to rely on a
combination of measures to reach the desired target groups.
Cash transfers provide a cost-effective way of alleviating the burden on vulnerable households and can
be financed from higher tax revenues. For example, IMF staff estimates of fiscal cost to compensate all poor
households for the increase in food prices in food insecurity vulnerable countries point to an average annual
cost of 0.15-0.30 percent of GDP (Rother and others 2022).11 Digital payments can improve the efficiency of
cash transfers even further. These additional outlays can be financed from increased tax revenues resulting
from a combination of higher prices, a relatively lower price elasticity of demand on food and energy products
and the prevalence of ad valorem taxes, such as VAT and ad valorem excise in flexible pricing regimes.
Moreover, where feasible, one-time solidarity tax on high-income households and businesses could be
considered to raise additional revenue. Such solidarity taxes are preferred over ex post windfall corporate taxes
as the latter could increase policy uncertainty and discourage future investments. Governments can also
consider permanent excess profits taxes—economic rents more than the return required by investors (Hebous
and others, 2022).
While cash transfers are strongly preferred to other forms of support to households could also be
considered. When existing social safety programs cannot be scaled up immediately, in the case of energy
prices, other temporary measures that rely on utility service providers could be deployed. For example,
governments can provide uniform lump sum discounts on utility bills to all households below a certain income
threshold. Such lump-sum benefits are more progressive and less distortive than benefits that are proportional
to utility bills. In addition, smoothing of energy bills throughout the year can help households avoid falling into
arrears during the months when more energy is needed for heating or cooling. Lifeline tariffs can help cushion
the impact of high prices on low-income households, but such tariffs are generally inferior to alternative
measures. This is because the consumption level of poor households is not always lower (Komives and others
2005), and the measure reduces the average tariff for the utilities and distorts prices. When food security is a
concern and cash transfers cannot be delivered, governments can consider providing price subsidies or
lowering consumption/import taxes with clear sunset clauses for basic food staples.
11
The calculations assume compensating households living on less than US$1.90 per capita per day for food price increases
between end-December 2021 and the most recent food inflation data available in 2022. The estimates assume temporary (six-
month) compensation, unchanged consumption budget shares allocated to food, and perfect targeting of compensation.
Because inflation varies significantly across countries, even within the same region and across peer countries, the analysis is
based on a lower bound value (10th percentile) and a higher bound value (90th percentile) to estimate a range of fiscal costs
rather than imputing central tendency values.

C. Ensure consistency with other policies, including the need for macroeconomic
stability
Measures introduced to fight the current cost-of-living crisis should not undermine broader policy
objectives and maintaining macroeconomic stability is key among those objectives. Against the
background of elevated inflation worldwide, it is crucial to ensure that monetary and fiscal policies stay aligned
on the path to sustained disinflation. In this context, although broad-based price subsidies could reduce current
readings of inflation they also lead to higher budgetary spending/lower revenues implying a more expansionary
fiscal stance at the time when monetary policy is tightening. Targeted and temporary measures, on the other
hand, are less costly and hence can be accommodated within the existing fiscal envelope delivering a tighter
fiscal stance.12 Moreover, maintenance of costly broad-based support measures reduces fiscal space for more
productive developmental spending.
Crises measures should not compromise climate-related objectives. The crisis is a reminder of the
importance of diversifying energy supplies away from fossil fuels, which can help accelerate the transition to
green economy and strengthen energy security. While in the short run alternative supply sources of
nonrenewable energy, including, for example, enhancing markets for Liquified Natural Gas (LNG) and
expanding production of shale oil and gas may be needed, to ease supply shortages, this should be done in a
way that is consistent with climate change goals. The crisis should also be used as an opportunity to
encourage investments in the production of renewables, to promote energy efficiency and facilitate expansion
of climate-resilient agricultural production.
D. Political considerations may explain the policy responses to limit the pass-
through
Results of the survey presented in this paper reveal that a relatively high number of measures aimed at
reducing the pass-through of international energy and food prices to domestic prices. This is true even
in countries with strong social safety nets. Political economy considerations may explain, in part, such policy
choices. Social unrest over price increases for energy and basic goods is not new (Morrisson 1996), and
protests over (planned) fuel price increases have occurred often, including in the recent past (for example,
Ecuador, France, Haiti, Iran, and Kazakhstan). Such protests have the potential to spark widespread discontent
with government policies. Some conditions, such as high poverty, inequality, and the electoral cycle, may
increase the risk of social unrest (Alesina and others 2019). A high perception of corruption may lead to
resistance to removing price subsidies because they are viewed as one of the few tangible benefits provided by
the government and there is a lack of confidence in governments reallocating the resulting budgetary savings
12
It is true that the pass-through of higher international prices to domestic prices would lead to higher inflation in short run through
direct and indirect channels. However, coordinated monetary and fiscal policies would help anchor inflation expectations and put
inflation on a downward path.

to benefit the population (Strand 2013). Finally, the existence of strong and well-organized interest groups—not
necessarily the most vulnerable—benefiting from lower prices or the status quo, can fuel social unrest.
Whereas these political considerations and the challenges in scaling up SSNs may prompt measures that limit
the pass-through, such interventions are costly and regressive, and cannot be a sustainable response to a
persistent shock. Therefore, it is crucial to let various measures that have been adopted recently to limit the
pass-through (for example, tax cuts) expire so that they do not get entrenched. A comprehensive
communication strategy is crucial to address underlying resistance.

Annex I. Data Collection and Methodology

The Database of Energy and Food Prices Actions (DEFPA) compiles the IMF survey conducted in March/April
and June/July 2022 for 174 country teams. For each country, measures announced by the governments in
response to higher energy and food prices between January and June 2022 were collected, together with
information on targeting, the duration, temporary nature or not of the measure, the announcement date, and the
fiscal cost. The DEFPA also gathers information on existing energy and food subsidies prevailing in the
country.
Coverage of the 174 countries in the survey were broadly balanced among income groups and regions (see
Annex Table A1). Most countries (142) announced at least one measure (36 out of 38 advanced economies, 67
out of 97 emerging market economies and 39 out of 59 low income developing countries. In total, the DEFPA
includes about 750 measures announced as a response to higher energy and food prices. The detailed,
country-by-country, which are organized by region, are described in the Annex II. Measures announced as a
response to higher energy and food prices but resulted in an increase in prices (for instance, removal of a
subsidy) are not included in DEFPA, as the focus is on measures aiming at mitigating the impact of higher
prices. These entail 23 measures, in 14 countries and are described in Table A2.
Annex Table 1.1 Coverage of Countries by Income Group and Region

Income Group Regional Group
ED- ED-
AEs EME LIDC CCA LAC MENAP SSA Total
Asia Europe
Not
4 10 10 0 8 0 8 1 3 24
participated
Participated
- No 2 20 10 2 6 2 3 9 8 32
measure
Participated
- At least
36 67 39 6 16 14 22 14 34 142
one
measure
Total 42 97 59 8 22 16 25 24 42 198
Coverage
(Percentage
of 90% 90% 83% 100% 73% 100% 76% 96% 93% 88%
Participated
Countries)
▪ Classification of Measures. The classification of measures in the DEFPA are in line with the
Government Financial Statistics Manual 2014. Measures are organized in the following categories:
spending, revenue, and transactions in financial assets and liabilities. DEFPA also includes non-fiscal
measures. In each category, the detailed breakdowns of the type of revenue and spending measures
follow are also in accordance with the classification in the GFSM 2014. Given the analytical relevance,

each measure that relates to reducing or preventing the pass-through of international prices to
domestic prices is categorized as well in line with the GFSM 2014. For instance, if the pass-through of
international prices to domestic prices is reduced by lowering excises, this measure is recorded under
excises. However, if the pass-through is reduced by providing subsidies through expenses or through
transactions in financial assets and liabilities, these measures are recorded accordingly. Measures that
prevent the pass-through but are not financed through fiscal operations are recording under Non-Fiscal
Measures. Examples are when governments impose a price cap on goods and public/private
companies pay for this (often through lower profit margins).
Annex Table 1.2 Mapping of Measures Categories and Subcategories

Transactions in Financial Assets
Revenues Spending Non-Fiscal Measures
and Liabilities
Price Freeze /
Price Freeze / incomplete pass-
VAT/Sales Tax Cash transfers incomplete pass-
through
through
Semi-cash
Excises Other Other
(vouchers & discounts)
Custom duties
In-kind transfers
(Import tariffs)
Corporate Income (Price) Subsidies to energy
Tax companies
Personal Income
(Price) Subsidies to food companies
Tax
Property tax Other subsidies to all companies
Non-tax revenues Wage bill
Other/unspecified Pensions
Revenues
Other/unspecified Spending
▪ Type of measures. DEFPA records two different information:
⚫ Discretionary measures. Discretionary measures refer to measures that would be actively taken by
governments. This means that automatic stabilizers or measures under the baseline are not
included. For instance, if indexation of benefits is prescribed under the law this will not be included
in the DEFPA.
⚫ Existing price subsidies. To complement the information on newly announced measures, the
DEFPA gathers information on existing food and energy consumer price subsidies prevailing in
the country. Subsidies for a set of food and energy products are gathered in the database for
years 2022, 2021 and 2022, measured in percentage of GDP. The detail of subsidies identified in
the DEFPA is reported in Annex III.
▪ Implementation stage. The focus of DEFPA is on announced policy measures, rather than the
measures implemented. It provides an overview of actions taken by countries, and make it possible to
deliver rapid, evidence-based policy advice (see FM April 2021, IMF Note, June 2022, September
2023 and Fiscal Monitor, October 2023 + REO if relevant). It also raises several issues from a
methodological point of view.

▪ Size of measures. Each measure has the same weight in the DEFPA regardless of size. However,
some measures are of a very small size in terms of GDP, other are more significant.
Annex Table 1.3 Subsidies in Food and Energy products in 2022

Energy Food
Size (% of Size (% of
Region Number of subsidies Number of subsidies
GDP) GDP)
AE 16 0.06
CCA 10 1.4 2 0.03
ED-Asia 16 0.57 2 0.94
ED-
10 0.58
Europe
LAC 44 0.76 11 0.07
MENAP 38 1.09 13 0.2
SSA 76 0.65 38 0.29

Annex II. List of Measures Announced in

Response to higher Energy and Food Prices
(January – June 2022)
Annex Table 2.1 - Announced Responses to Higher Food and Energy Prices - Advanced economies
Country Detailed Type of Measure Type of Measure Subcategory Measure Description
Andorra Spending Semi-cash Support on public transport costs
Cash transfers Increase in social transfers and
increased subsidies to facilitate
school attendance.
Semi-cash Support for energy transition
(Plan Renova)
Revenue Excises Reduction of excises for the
transport sector
VAT/Sales Tax Reduction of taxes on necessity
goods
Other (non-fiscal) Other (non-fiscal) Increase in minimum wages
Australia Spending Semi-cash Temporary rebate for electricity

bills for households
Cash transfers Cash transfers to vulnerable
households (pensioners,
veterans, welfare recipients)
Cash transfers to middle to low-
income households
Revenue Excises Reduction of excise and custom
duties for petrol and diesel
Austria Spending Cash transfers 300 euros each for vulnerable,
180 for family allowance
Semi-cash 150 euros for all, 300 euros for
vulnerable individuals
Other subsidies to all companies Energy subsidy for energy-
intensive companies
(Price) Subsidies to food Compensation on agricultural
companies diesel cost
Cash transfers 250 euros for all for each
instrument
Cash transfers Inflation compensation
Cash transfers Indexation with inflation
(Price) Subsidies to food Promote farms to compensate for
companies increased energy, fertilizer and
feed costs
Cash transfers 100 euros in 2022, 200 euros in
2023
Cash transfers One-time payment for pensioners
Semi-cash Extension of transport service
contracts, regional climate ticket
Other subsidies to all companies Companies whose energy cost is
over 3 percent of production value
in 2021 and whose national
energy
Revenue Other/unspecified Revenues Employer contributions reduction
by 0.2 percent
Corporate income tax Tax concession up to euro 3,000
Personal income tax 500 euros deductible

Personal income tax Indexation of personal income tax

Other/unspecified Revenues Commuter cost equalization
VAT/Sales Tax Reduction of excise on electricity
and natural gas
Other (non-fiscal) Other (non-fiscal) Extra budgetary (no effect in the
budget)
Belgium Spending Semi-cash Extension of the social tariff until
end-Jun 2022
Cash transfers Extension of temporary
unemployment benefit under
force majeure (from “pandemic” to
“war in UK
Semi-cash Winter discount on energy bill of
80 euro/household
Semi-cash Heating voucher of 100
euro/household; Heating voucher
of 200 euro/household for heating
oil; Heating
Semi-cash Extension of the social tariff until
end-Mar 2022
Semi-cash Fund for Gas and Electricity to
support households in need (that
are not eligible to the social tariff)
end-Dec 2022
end-Sep 2022
Revenue VAT/Sales Tax Extend reduction of VAT on
electricity for residential users
Excises Reduction of excises on petrol
and diesel
Excises Extension of reduction of excises
on petrol and diesel
VAT/Sales Tax Reduction of VAT on electricity for
residential users
VAT/Sales Tax Reduction of VAT on gas
VAT/Sales Tax Extend the reduction of VAT on
gas and electricity for residential
use
Canada Spending Semi-cash Electricity rebates in Alberta
One-off electricity bill credits in

British Columbia
Other/unspecified Spending Support measures on food and

energy in Prince Edward Island
Revenue Excises Temporary reduction of excises

on gas and fuel
Excises Temporary reduction of excises

on diesel and gasoline
Curacao Revenue Custom duties (import tariffs) Reduction of excises on gasoline
VAT/Sales Tax Reduction of VAT on diesel and
gasoline
Cyprus Revenue VAT/Sales Tax Extension of reduction of VAT on
electricity for vulnerable
residential users
Excises Reduction of excises on
petroleum

VAT/Sales Tax Extension of reduction of VAT on

electricity for vulnerable
residential users
Czech Republic Spending (Price) Subsidies to energy Support to heating providers
companies
Semi-cash Support for HH to install energy
efficiency systems
Cash transfers Benefits for families with children
Semi-cash Waiver applied to all electricity
users in bills on renewable energy
Cash transfers Support for households with lower
income
Semi-cash Energy savings tariff for
households
Revenue Other/unspecified Revenues Waiver on road tax
Excises Reduction of excises on fuel
products
Denmark Spending Semi-cash Vouchers to households for
increased heating costs
Estonia Spending Cash transfers One-off payments of €50 in
November 2022 to vulnerable
groups
Semi-cash Compensation of increase in
energy prices for low-income
households
Other subsidies to all companies Reimbursement of electricity
network charges to businesses
(Price) Subsidies to energy Price ceiling for household
companies electricity and gas consumption
Semi-cash Compensation of electricity and
gas network fee for all consumers
Other subsidies to all companies Support to natural gas network
operators and cogeneration of
natural gas
Semi-cash Compensation of the increase in
the price of district heating
Revenue Excises Excise duty cuts on agricultural
diesel
Finland Spending Other subsidies to all companies Transportation support for the
logistics sector
Pensions Increased pension benefits
through an index adjustment for
benefits
Revenue Personal income tax Increased deduction for
commuting expenses
Personal income tax Reduction of income and capital
income taxes
France Spending Cash transfers Increased social assistance
benefits through an index
adjustment
Wage bill Increased civil servant wages
through an indexation adjustment
(Price) Subsidies to energy Fuel price subsidy (remise
companies carburant)
Pensions Increased pension benefits
through an index adjustment for
benefits
Cash transfers Cash transfers of €100 to low-
income earners
Other subsidies to all companies Support for energy-intensive
companies through grants

(Price) Subsidies to energy A freeze on regulated natural gas

companies tariff (bouclier tarifare)
Semi-cash Increased amount of energy
vouchers to low-income
households
Other/unspecified Spending Job retention scheme for affected
sectors
Other subsidies to all companies Support for targeted sectors,
including fuel subsidy
Semi-cash Vouchers for food for vulnerable
households (chèque alimentaire)
Revenue Excises Reduction in excise tax on
electricity
Personal income tax Increase in ceiling of transport
bonus (prime de transport) by
employers of fuel and supply
costs for electric, rechargeable
hybrid or hydrogen vehicles used
by employees to commute
Personal income tax Increase in tax deduction on
transport cost
Below the line Other (btl) State-guaranteed bank loans
(Prêt garanti par l’État Résilience)
Other (btl) Increase in volume of low-cost
nuclear energy supplied to
distributors
Germany Spending Other subsidies to all companies Subsidy program for energy
intensive companies to cushion
the increase in gas and electricity
prices.
Semi-cash Price cap for transportation (train)
Other subsidies to all companies Extension of special regulations
for short-time work benefits and
the maximum duration.
Cash transfers Cash transfers to vulnerable
households
Semi-cash One-off heating cost subsidy for
those receiving housing benefit,
students and schoolchildren
(Price) Subsidies to energy Subsidy for short-term
companies procurement, storage, and
transport of additional gas
reserves
Revenue Personal income tax Increase in the basic allowance
for income tax
Personal income tax Employee allowance for income
tax
Corporate income tax Extended loss offsetting
(operating losses in 2022 and
2023)
Excises Eliminate the renewable energy
surcharge
Personal income tax One-off energy price lump sum to
all the employed
Personal income tax Price cap on long-distance
commuters
Below the line Other (btl) Financing of the new terminal with
increased regasification capacity
Other (btl) Loans and guarantees

Greece Spending Semi-cash Electricity bill discounts for

households
Cash transfers Increased transfers to low-income
and vulnerable households
Semi-cash Vouchers for fuel purchases for
households
Semi-cash Natural gas bill discounts for
households
Semi-cash Natural gas bill discounts for firms
Semi-cash Electricity bill discounts for
households
Other subsidies to all companies Subsidies for energy use to
agriculture sector, taxi drivers
Semi-cash Electricity bill discounts for firms
Revenue VAT/Sales Tax Reduction of VAT rate on
foodstuff and agricultural
fertilizers
Iceland Spending Cash transfers Increased cash transfers for child
benefits
Cash transfers Increased cash transfers of social
benefits
Israel Spending Semi-cash Increased daycare subsidy
Revenue Personal income tax Increased income tax credit for
low-wage workers
Custom duties (import tariffs) Reduction of tariffs on food
Personal income tax Tax credits for parents with young
children
Excises Reduction on excise tax on coal
Custom duties (import tariffs) Reduction of tariffs on raw
materials
Excises Reduction of excise taxes on
gasoline and diesel
Italy Spending Semi-cash Energy bill vouchers/discounts
(bonus sociale) for vulnerable
households
Cash transfers Cash transfers
Revenue VAT/Sales Tax Reduction of VAT rates for natural
gas and system charges
Corporate income tax Tax credit for energy bills for
energy-intensive companies
Excises Discount on gasoline and diesel
Non-tax revenues Elimination of electricity system
charges
Japan Spending Other subsidies to all companies Subsidy to taxi operators
Semi-cash Subsidy to lower electricity prices
and gas
(Price) Subsidies to food Subsidy to farmers for fertilizer
companies purchase
(Price) Subsidies to food Subsidy for fishery industry
companies
(Price) Subsidies to energy Subsidy for importers/wholesalers
companies of petroleum products
Below the line Other (btl) Credit guarantees for SMEs
Korea Spending Other subsidies to all companies Subsidy for diesel fuel
Revenue Excises Extension of the fuel tax cut
Custom duties (import tariffs) Removal of import tariff on food
items
Custom duties (import tariffs) Reduction of import tariff on jet
fuels

Latvia Spending Semi-cash Voucher on electricity bills

Cash transfers Cash transfers for seniors and
people with disabilities
Other/unspecified Spending Grant to local government
Cash transfers Cash transfers for families with
children (EUR50) and people with
disabilities
Cash transfers Cash transfers for long service
defense pensioners (EUR20)
Other (non-fiscal) Other (non-fiscal) Reduction of the mandatory
procurement component
Lithuania Spending Pensions Increase in pensions
Other subsidies to all companies Subsidy to support affected
sectors
Semi-cash Grant for household installing
solar power panels
Semi-cash Subsidy for energy bills
Cash transfers Cash transfers and subsidy for
heating
(Price) Subsidies to energy Subsidy for energy for businesses
companies
Revenue VAT/Sales Tax Reduction of VAT on heating
Personal income tax Increase non-taxable income
threshold
Luxembourg Spending (Price) Subsidies to energy Grant program for energy efficient
companies renovations and subsidy for
network costs for gas
Semi-cash Increase of the rental allowance
and tertiary education allowance
Cash transfers Subsidy for home renovation
Semi-cash Grant for acquisition of electric
vehicles
Cash transfers Increase in cash transfers (living
allowance) and extension of
coverage
Other subsidies to all companies Subsidy to support affected
sectors
Revenue Personal income tax Progressive income tax credit to
low- and middle-income
households
Excises Reduction of excise tax on fuel
Below the line Other (btl) Guarantees to support firms
Other (non-fiscal) Price Freeze / incomplete pass- Freeze of rentals
through
Malta Spending (Price) Subsidies to energy Subsidy for energy prices
companies
(Price) Subsidies to food Subsidy to support grain
companies importers
Below the line Other (btl) Liquidity support guarantee
scheme for businesses
Other (btl) Liquidity support guarantee for
fuel and oil importers
Other (btl) Subsidized loan schemes
Netherlands Spending Semi-cash Rise in energy tax credit for low-

income households (EUR 265)
Semi-cash Increase in energy allowance
from EUR200 to 800
Semi-cash Grant for energy-saving insulation
in low-income households

Revenue Excises Reduction of excise duties on

petrol and diesel by 21%
VAT/Sales Tax Reduction of VAT on taxes for
natural gas, electricity and district
heating from 21% to 9%
Excises Progressive reduction of
electricity tax rates by tax
brackets
VAT/Sales Tax Reduction of energy taxes by
three points
New Zealand Revenue Other/unspecified Revenues Exemption of road user charge
Excises Removal of fuel excise
Non-tax revenues Reduction of public transport
fares
Norway Spending Other/unspecified Spending Energy efficiency measures
Cash transfers Increased housing allowance of
NOK1500/month over winter
Semi-cash Electricity bill discount for
households if the average
electricity price is above a limit
Other/unspecified Spending Compensation to municipalities
Cash transfers Increased cash transfers for
students
Revenue Excises Reduction of electricity tax
Portugal Spending Cash transfers Cash transfer targeted to

vulnerable households
Semi-cash Voucher for LPG
Other subsidies to all companies Subsidy for renewable
investments
Other subsidies to all companies Subsidy for energy-intensive firms
Other subsidies to all companies Subsidy for transport sector
Revenue VAT/Sales Tax Reduction of VAT for fuels
Excises Excise tax cuts on fuel
Excises Vat suspension on fertilizers
Excises Temporary suspension of carbon
tax increase
Excises Reduction of excises on diesel
and gasoline
Other/unspecified Revenues Tax payment deferrals
Below the line Other (btl) Credit support for vulnerable
energy intensive companies
Other (btl) Credit support for agricultural
sector
Other (non-fiscal) Price Freeze / incomplete pass- Reduction of electricity tariffs
through
Price Freeze / incomplete pass- Prize cap on electricity production
through in wholesale electricity market
San Marino Spending Other/unspecified Spending Deferred payment of electricity
and natural gas bills
Semi-cash Discount on electricity and natural
gas bills
Revenue Excises Reduction of excises on fuel
Singapore Spending Semi-cash Vouchers for utility bills

Sint Maarten Revenue Excises Reduction of excises on gasoline
Other (non-fiscal) Price Freeze / incomplete pass- Price ceiling expansion for
through selected food products
Slovak Republic Spending Cash transfers Cash transfer targeted to

Cash transfers Cash transfer (temporary)

targeted to households with
children
Semi-cash Inflation aid package/child activity
vouchers
Cash transfers Cash transfer (permanent)
targeted to households with
children
Revenue Personal income tax Child tax credit in the PIT
Other (non-fiscal) Price Freeze / incomplete pass- Price freeze for electricity tariffs
through
Slovenia Spending Other subsidies to all companies Subsidy for companies for which
the electricity bill was larger than
5 percent of operating costs
(Price) Subsidies to food Subsidy for farmers
companies
Cash transfers Cash transfer targeted to
(disabilities, social assistance
recipients and pensioners
Revenue Other/unspecified Revenues Reduction of carbon tax for

selected fuel products
Excises Amendments to the excise duty
on electricity
Excises Reduction of excises on diesel,
gasoline, heating oil and natural
gas
Other (non-fiscal) Other (non-fiscal) Suspension of payments of
network charges
Other (non-fiscal) Cancellation of the energy
efficiency contribution and the
contribution to supporting
production of
Price Freeze / incomplete pass- Incomplete pass-through to
through petroleum products
Price Freeze / incomplete pass- Price cap for gasoline and diesel
through
Spain Spending Cash transfers Energy bill discounts and
increased amount of cash
transfers extended
Other subsidies to all companies Direct aids for energy-intensive
(transportation and others) and
food-related (agriculture, fish)
sectors
Semi-cash Rebate on transport fuels
Cash transfers Increased amount of cash
transfers to vulnerable
households
Other subsidies to all companies Direct aids for energy-intensive
(transportation and others) and
food-related (agriculture, fish)
sectors
Semi-cash Energy bill discounts for
Cash transfers Cash transfers to more vulnerable
households
Semi-cash Rebate on transport fuels

Revenue VAT/Sales Tax Reduction of VAT rate on

electricity from 21% to 10%
Excises Reduction of tax rate on special
tax on electricity consumption
(from 5.1% to 0.5%)
VAT/Sales Tax Reduction of VAT rate from 10%
to 5%
Other/unspecified Revenues Suspension of tax on electricity
production
Other/unspecified Revenues Suspension of tax on electricity
production
Excises Reduction of tax rate on special
tax on electricity consumption
Below the line Other (btl) Corporate credit line
Other (non-fiscal) Price Freeze / incomplete pass- Cap on gas price for electricity
through production
Price Freeze / incomplete pass- Cap on rent increase
through
Price Freeze / incomplete pass- Cap on rent increase
through
Price Freeze / incomplete pass- Cap on the regulated tariff of
through natural gas limiting price
increases to 35%, for consumers
who are no
Sweden Spending (Price) Subsidies to energy Subsidy for electricity products in
companies selected regions
Semi-cash Vouchers for housing costs
Semi-cash Vouchers for electricity bills
Revenue Excises Temporary reduction in petrol and
diesel taxes
Excises Indexation of fuel taxes to GDP
Personal income tax Travel deduction in the PIT
Other (non-fiscal) Other (non-fiscal) Suspension of the biofuel’s
reduction obligation
Switzerland Spending Other/unspecified Spending Secure energy supplies
Other (non-fiscal) Other (non-fiscal) Release of compulsory stocks of
fertilizers
Other (non-fiscal) Procurements of additional gas
imports and LNG terminal and
storage capacity
United Kingdom Spending Cash transfers Cash transfers to low-income
households (£650)
Semi-cash Expansion of eligibility criteria of
the electricity bill discount (Warm
Homes Discount)
Cash transfers Cash transfers to low-income
households eligible for the Winter
Fuel Payment (£300)
Semi-cash Rebate for household energy bills
(£400)
Cash transfers Increased budget for household
support (the Household Support
Fund)
Cash transfers Cash transfers to those who
receive disability benefits (£150)
Revenue Property tax Rebate on domestic tax (council
tax)
Excises Reduction in fuel duties

Other/unspecified Revenues Increased threshold for lower

income workers subject to the
national insurance contribution
Source. DEFPA, June 2022 Update, IMF.
Annex Table 2.2 - Announced Responses to Higher Food and Energy Prices - Caucasus and Central
Asia
Azerbaijan Spending (Price) Subsidies to food Interest subsidies to SME food
companies producers (agriculture
processing)
Revenue Custom duties (import tariffs) Reduction of custom duties on
imported foods and a number of
intermediate products used in
domestic
VAT/Sales Tax Reduction of VAT on wheat and
bread
Georgia Spending Semi-cash Vouchers to farmers in fertilizer
purchase
Cash transfers Increase in cash transfers
Kazakhstan Other (non-fiscal) Export restriction Export ban of gasoline and fuel
Export restriction Export restrictions on wheat and
wheat flour
Price Freeze / incomplete pass- Price ceiling on LPG (liquified
through petroleum gas), diesel fuel and
gasoline
Export restriction Export ban on sugar
Price Freeze / incomplete pass- Price cap on basic food products
through
Price Freeze / incomplete pass- Price freeze on utilities
through
Kyrgyz Republic Spending Other/unspecified Spending Fiscal provision for food reserve
Wage bill Public wage and pension
increase
Revenue VAT/Sales Tax Reduction of VAT rates on
imported agricultural goods
Custom duties (import tariffs) Tax reduction to facilitate basic
food products imports
Below the line Other (btl) Concessional lending to SMEs
(e.g., farms) through capital
increases in bank sector
Other (non-fiscal) Export restriction Export ban on selected cereals
Tajikistan Spending (Price) Subsidies to food Subsidy (in-kind) for farmers

companies
In-kind transfers In kind staple food supply to
Other (non-fiscal) Other (non-fiscal) Increase access to FX for
selected sectors
Price Freeze / incomplete pass- Incomplete pass-through to food
through products
Other (non-fiscal) Securing a duty-free (customs fee
exempted) grain quota from
Russia
Price Freeze / incomplete pass- Increase in production of food
through products
through electricity tariffs

Other (non-fiscal) Explore opportunities for

diversification of imports of basic
goods
Other (non-fiscal) Increase fertilizers supply
Uzbekistan Revenue VAT/Sales Tax Reduction of VAT on meat

VAT/Sales Tax Reduction of VAT on vegetable oil
Annex Table 2.3 - Announced Responses to Higher Food and Energy Prices - Emerging and Developing
Asia
China Spending (Price) Subsidies to food Support grain producers through
companies purchasing and stockpiling
(Price) Subsidies to food Subsidies for full-cost insurance
companies and income insurance for grain
producers
Cash transfers Food price subsidies to
unemployed
Other (non-fiscal) Other (non-fiscal) Lifting wheat import restrictions
from all Russian regions
Price Freeze / incomplete pass- Price cap on coal prices
through
Other (non-fiscal) Support for fossil fuels to ensure
energy security
Other (non-fiscal) Incentives to increase coal mining
activities
Fiji Revenue VAT/Sales Tax Suspension of VAT Tax on
essential consumer products
India Spending (Price) Subsidies to food Increase subsidy for fertilizers
companies
In-kind transfers Extend food rations
Semi-cash Subsidy for LPG
Revenue Excises Reduction of excise tax for
gasoline and diesel
VAT Reduction in VAT on fuels by
some states
Custom duties (import tariffs) Reduction in import duties on
some food items
Other (Non-fiscal) Export restrictions Export restrictions/ban on food
products
Easing import restrictions
Other (non-fiscal)
Indonesia Spending (Price) Subsidies to energy Increased energy subsidy in the
companies budget
Semi-cash Cash transfers on cooking oil
Cash transfers Increased social protection in the
budget
(Price) Subsidies to energy Fuel subsidy
companies
Revenue Other/unspecified Revenues Export duties adjustment of crude
palm oil on its threshold and levy
rate
Other (non-fiscal) Price Freeze / incomplete pass- Price ceilings on bulk cooking oil
through
Export restriction Export restrictions for crude palm
oil
Other (non-fiscal) Incentive on price difference
(CPO fund)

Price Freeze / incomplete pass- Price ceiling on bulk cooking oil

through
Malaysia Spending Cash transfers Cash transfers to lower-income
households to address food price
inflation
Mongolia Spending (Price) Subsidies to energy Exemption of utility bills for
companies households living in dwelling with
monthly consumption under
certain threshold.
Revenue VAT/Sales Tax Exemption of VAT for food
products
Excises Removal of the excise tax on
imported diesel fuel
Custom duties (import tariffs) Exemption of custom duties of
gasoline
Custom duties (import tariffs) Exemption of custom duties of
sugar, oil and rice
Below the line Other (btl) Loan facility for food producers
Nauru Spending Other subsidies to all companies Subsidies to critical state-owned

enterprises that provide services
to public
Revenue Custom duties (import tariffs) Reduction of the import duty on
petrol and diesel
Nepal Spending In-kind transfers Exemption of electricity bills for
poor households
(Price) Subsidies to food Subsidy for crop and animal
companies insurance premium
(Price) Subsidies to food Subsidy on fertilizer
companies
In-kind transfers Distribution of electric stoves
Semi-cash Subsidy for households producing
biogas
(Price) Subsidies to energy Increase subsidy to electricity
companies company instead of gas to
support substitution
Other/unspecified Spending Build community warehouses for
storage
(Price) Subsidies to food Subsidy to promote farmers' self-
companies reliance
In-kind transfers Distribution of meals for students
Other subsidies to all companies Subsidies to support production of
solar mini grids to increase
renewable energy generation
capacity
(Price) Subsidies to food Subsidy to support capital
companies acquisition by small producers
(20% of value for 300 farmers)
(Price) Subsidies to energy Subsidy for local institutions
companies investing in renewable energy
sources (hydropower)
Revenue Excises Reduction of taxes to lower fuel
prices
Corporate income tax Income tax waiver for companies
producing electric vehicles
Other subsidies to all companies Reduction of electricity tariffs for
industries
Custom duties (import tariffs) Reduction of custom duties on
transportation vehicles
Corporate income tax Tax exemptions for companies
producing agricultural equipment
machinery

Excises Reduction of tax on petrol

products
Excises Removal of infrastructure tax on
petrol products
Below the line Other (btl) Green hydrogen and green
ammonia-based fertilizer factory
Other (btl) Fund to support farmers’
operations through loans and
other actions
Price Freeze / incomplete pass- Guaranteed loans to the national
through oil company to purchase
petroleum products
Other (btl) Microfinance fund for deprived
areas
Other (btl) Installation of electric vehicles
charging stations
Other (btl) Agriculture Knowledge Center
and Livestock Service Expert
Service Center to modernize
agricultural sector
Other (non-fiscal) Price Freeze / incomplete pass- Ceiling on price increase of
Palau Spending (Price) Subsidies to energy Subsidy to the public utility
companies company
Philippines Spending Cash transfers Increased cash transfer
Other subsidies to all companies Fuel voucher for public
transportation franchise holders
Semi-cash Fuel Discount Program to farmers
and fisherfolk of up to a maximum
amount of Php3,000 per
beneficiary
Revenue Custom duties (import tariffs) Temporary reduction in tariffs for
rice, pork, corn and coal until end-
2022.
Solomon Islands Revenue Custom duties (import tariffs) Reduction of custom duties on
fuel
VAT/Sales Tax Reduction of excises for fuel
Sri Lanka Spending Pensions Increases in salaries and

pensions for government
employees
Wage bill Increased public wages and
pensions
Cash transfers Cash transfers to low-income
households
Revenue VAT/Sales Tax Reduction of taxes on food
products
Thailand Spending (Price) Subsidies to energy Price cap on natural gas for
companies vehicles
Other subsidies to all companies Subsidy for gasohol for
motorcycle tax drivers
(Price) Subsidies to energy Subsidy for electricity generation
companies
Semi-cash Vouchers for cooking gas for
Semi-cash Discount on electricity tariffs for
consumption below a specific
threshold
(Price) Subsidies to energy Price cap on LPG
companies
(Price) Subsidies to energy Price cap on diesel
companies

Other subsidies to all companies Subsidy of natural gas for vehicle

taxi drivers
Revenue Excises Reduction of excises on diesel
Other/unspecified Revenues Reduction of social security
contributions for selected groups
Below the line Other (btl) Contribution of selected refineries
to the "Oil Fund"
Timor-Leste Spending Other subsidies to all companies Subsidy for fuel for road, air and
maritime transport operations and
companies in the agricultural and
fishing activities.
Tonga Spending Semi-cash Discount on electricity tariffs for
low-income households
Vietnam Revenue Excises Reduction of excise on gasoline
Excises Reduction of excise on gasoline
Annex Table 2.4 - Announced Responses to Higher Food and Energy Prices - Emerging and Developing
Europe
Albania Spending (Price) Subsidies to food Subsidies for farmers and
companies fishermen
(Price) Subsidies to energy Subsidies for the transport
companies industry
Pensions Increased pension payments
Cash transfers Temporary cash transfers to
(Price) Subsidies to energy Subsidies to energy companies
companies
Bosnia and Herzegovina Spending Cash transfers Social assistance program to
Other/unspecified Spending Reconstruction of oil terminals
Pensions Increase in public wages and
pensions
Other/unspecified Spending Increase in commodity reserves
In-kind transfers Free fuel for agricultural
producers
Cash transfers One-off cash assistance to
pensioners and young people
(KM 100)
Revenue Excises Reduction of excises and VAT on
fuel products
VAT/Sales Tax Reduction of excise on fuel and
VAT rates on necessity goods
Other (non-fiscal) Export restriction Export ban for heating wood
Other (non-fiscal) Extension of usage of thermal
power plants
Price Freeze / incomplete pass- Increase for the electricity price is
through limited up to 20 percent compared
to 2021
Bulgaria Spending Other/unspecified Spending Government purchase of wheat,
corn, and sunflower supplies
Semi-cash Compensation for corporate and
household consumption of
electricity
Revenue VAT/Sales Tax Reduction of VAT for bread,
district heating and natural gas


electricity, LNG and other
products
Personal income tax Tax relief for Children
Croatia Spending (Price) Subsidies to food Subsidy for farmers purchasing

companies fertilizers
(Price) Subsidies to food Subsidy for fishermen in the
companies diesel
Semi-cash Expansion of current electricity
voucher program for vulnerable
households
Other subsidies to all companies Subsidies for gas costs for small
and medium-sized companies
Other subsidies to all companies Subsidies to craft industry
Semi-cash Financial aid to pensioners and
energy-poor households
Revenue Excises Reduction of excise duties on
unleaded gasoline
VAT/Sales Tax Reduction of VAT rates on gas
Personal income tax Increase in income tax relief limit
for dependents
VAT/Sales Tax Reduction of VAT rates on
heating energy
VAT/Sales Tax Reduction of VAT rates on food
(fresh meat, fish, eggs, fruits,
vegetables, cooking oil, baby
food, seeds and fertilizers)
Excises Reduction on excise duty of fuel
and margins cuts for fuel retailers
Excises Reduction of excise duty on petrol
Below the line Price Freeze / incomplete pass- Price ceilings for retail fuel price
through
Price Freeze / incomplete pass- Price caps for electricity and
through natural gas
Other (btl) Loan guarantees for state power
utility company to finance the
procurement of electricity
supplies, coal and heating energy
and invest in the natural gas
storage facility
Price Freeze / incomplete pass- Removal of energy service fees
through
Price Freeze / incomplete pass- Margin cuts for electricity
through distributors
Price Freeze / incomplete pass- Fuel price caps at petrol stations
through at some geographic locations
Price Freeze / incomplete pass- Margin freezes on petroleum
through products
Hungary Revenue Excises Reduction of excise taxes on
fuels for vehicles
Other (non-fiscal) Price Freeze / incomplete pass- Price cap on six staple foods
through
Other (non-fiscal) Price cap on interest payments on
mortgages
Price Freeze / incomplete pass- Price cap on the retail price for
through motor fuels
Kosovo Spending Cash transfers One-off cash transfer (EUR100)
to public and private sector
employees
Cash transfers One-off cash transfer (EUR100)
to pensioners

(Price) Subsidies to energy Subsidy for electricity imports

companies
(Price) Subsidies to food Subsidies for diesel fuel used in
companies agriculture, fertilizer and
agricultural products
Cash transfers One-off cash transfer (EUR100)
to university students
In-kind transfers Food distribution of 40,000 meals
for households in need
Cash transfers Increase in pensions and social
assistance benefits below 100
EUR per month
Cash transfers Doubling of Social Assistance
payments for one month
Other (non-fiscal) Price Freeze / incomplete pass- Profit margins on wholesale and
through retail trade of diesel fuel
temporarily (March-May) frozen at
2% and 6%, respectively
Price Freeze / incomplete pass- Decline in profit margins of diesel
through fuel
Moldova Spending Cash transfers Targeted and progressive cash
transfer to compensate for higher
electricity prices
Semi-cash Electricity bill discount
Other subsidies to all companies Subsidies to companies to
compensate for higher electricity
costs
Cash transfers Targeted and progressive cash
transfer to compensate for higher
electricity prices
Montenegro, Rep. of Spending (Price) Subsidies to food Vouchers for food producers;
companies subsidies for the production of
staple goods and use of
greenhouses
Revenue Excises Reduction of fuel duties
VAT/Sales Tax Reduction of VAT on food and
energy products
Other (non-fiscal) Price Freeze / incomplete pass- Ceiling on trade margins
through
North Macedonia Spending Pensions Increase in pensions
Cash transfers Cash transfers for low-income
consumers
(Price) Subsidies to food Increased subsidy for agriculture
companies
Other/unspecified Spending Increase commodity reserves
(Price) Subsidies to energy Subsidy to electricity State-owned
companies company
Wage bill Increased wage in primary and
secondary education
Revenue VAT/Sales Tax Reduction of VAT on fuel
VAT/Sales Tax Reduction of VAT on basic food
products
Custom duties (import tariffs) Reduction of import duties on
basic food products
Excises Postponement of a new eco tax
VAT/Sales Tax Price freeze on electricity for
households
Excises Reduction of excise tax on oil
Below the line Other (btl) Subsidy to state-owned electricity
company

Other (non-fiscal) Price Freeze / incomplete pass- Price freeze on basic food
through products
Price Freeze / incomplete pass- Ceiling on trade margins
through
Poland Spending (Price) Subsidies to energy Subsidies for coal
companies
(Price) Subsidies to energy Subsidies for gas
companies
Revenue VAT/Sales Tax Reduction of VAT for fertilizers
VAT/Sales Tax Reduction of VAT for fuels
VAT/Sales Tax Reduction of VAT for food and
beverages
Romania Spending (Price) Subsidies to energy Subsidies for fuel
companies
Semi-cash Vouchers for students from
Cash transfers Cash transfer for pensioners
Other subsidies to all companies Subsidy for SMEs
Cash transfers Extension of voucher for energy
to vulnerable households
(Price) Subsidies to energy Extension of energy cap
companies
Cash transfers Wage subsidy for unemployment
Semi-cash Voucher for food products
(Price) Subsidies to energy Energy cap
companies
Other/unspecified Spending Increased investments for
National Program for Local
Development
Other subsidies to all companies Subsidy for transporters
(Price) Subsidies to food Subsidy for food processing
companies industries
In-kind transfers Double hospitals food allowance
Cash transfers Voucher for electricity bill for
pensioners
Cash transfers Voucher for energy to vulnerable
households
Other subsidies to all companies Subsidy for major investments
Revenue VAT/Sales Tax Introduction of reduced VAT rate
for heating
Non-tax revenues CO2 certificates
Serbia Spending (Price) Subsidies to energy Subsidy for the electricity

companies company
Revenue Excises Reduction of excises on diesel
and gasoline
Custom duties (import tariffs) Temporary reduction of custom
duties on fuel
Below the line Other (btl) State guarantee to the SOE in
charge of gas provision
Other (btl) State lending to the SOE in
charge of gas provision
Other (non-fiscal) Export restriction Export ban and quotas on
selected food items
Price Freeze / incomplete pass- Price freeze for diesel and
through gasoline
Price Freeze / incomplete pass- Price freeze for selected food
through items

Price Freeze / incomplete pass- Incomplete pass-through of fuel

through prices for farmers
Turkey Spending Pensions Increase in pensions
(Price) Subsidies to food Subsidy for production of grains,
companies pulses and oil seeds
Other subsidies to all companies Subsidy for minimum wages for
employers
Pensions Increase in pension for civil
servants
Other subsidies to all companies Subsidy to contractor companies
Cash transfers Cash transfer
Wage bill Additional increase in pensions
Revenue VAT/Sales Tax Reduction of VAT on staple foods
Corporate income tax Postponement of inflation
accounting in the CIT
vegetable oil
VAT/Sales Tax Reduction of VAT on residential
electricity bills
Personal income tax Income and stamp tax
exemptions in the PIT for
minimum wages
Personal income tax Extension of withholding tax
exemption on deposits
Non-tax revenues Interest write-off on outstanding
student loans
Corporate income tax CIT reduction for exporters and
industries
Other (non-fiscal) Export restriction Export restriction of selected food
products
Ukraine Revenue Other/unspecified Revenues Differentiation of gas royalties
VAT/Sales Tax Reduction of excises and VAT
rates
Other (non-fiscal) Price Freeze / incomplete pass- Reduction in fuel prices
through
Price Freeze / incomplete pass- Price cap for gas prices for
through enterprises
Annex Table 2.5 - Announced Responses to Higher Food and Energy Prices - Latin America
Antigua and Barbuda Spending Other subsidies to all companies Fuel voucher programs
Other subsidies to all companies Revised fuel voucher programs
Argentina Spending Cash transfers Cash transfers to vulnerable

households
Semi-cash Higher cash assistances to
Revenue Excises Deferral of excise tax on fuels
Personal income tax Increase in non-taxable income
tax threshold for wage earners
Other (non-fiscal) Other (non-fiscal) Incentives to increase the supply
of biofuels
Other (non-fiscal) Export regulations of beef
Other (non-fiscal) Increase in minimum wages
Other (non-fiscal) Exemption of fuel imports
regulations
Price Freeze / incomplete pass- Extension of benchmark price
through schemes (Precios Cuidados)

Bahamas, the Revenue Custom duties (import tariffs) Reduction of custom duties on
selected food imports
Barbados Revenue VAT/Sales Tax Reduction of VAT on diesel and
gasoline
Custom duties (import tariffs) Freight costs cap
Bolivia Other (non-fiscal) Export restriction Export restrictions for selected

food items
Brazil Spending Cash transfers Increment in the coverage and in
the monthly benefit of Auxílio
Brasil
Semi-cash Emergency aid to support family
farmers
Semi-cash Emergency aid to subsidize the
use of public transportation by
elderly people
Other subsidies to all companies Emergency aid to subsidize diesel
to help truck drivers
Semi-cash Vouchers for cooking gas
Other/unspecified Spending Compensatory measures for the
states that provide tax credits on
ethanol
Other subsidies to all companies Emergency aid to subsidize fuel
to help taxi and Uber drivers
Revenue Corporate income tax Full removal ("zeroing") of
contributions on domestic
transactions and imports of diesel
industrialized products
VAT/Sales Tax Reduction of VAT on fuel
products
products
imports
Other (non-fiscal) Price Freeze / incomplete pass- Imperfect pass-through of
through international oil prices to domestic
retail prices by Petrobras
Chile Spending (Price) Subsidies to energy Fixed public transportation prices
companies
Revenue Excises Reduction of excises on gasoline
Colombia Revenue Custom duties (import tariffs) Reduction of custom duties for
agricultural products
Costa Rica Revenue Excises Smaller increase in excises on
fuel
shipping products?
Dominican Republic Spending Other subsidies to all companies Subsidy for fuel subsidy for public
transport
Cash transfers Cash transfers (expansion) for
food and fuel
(Price) Subsidies to energy Subsidy for retail fuel price
companies
Other subsidies to all companies Cash transfers for mototaxi
sectors
In-kind transfers Food assistance (in-kind and
subsidized)
(Price) Subsidies to food Subsidy for basic food
companies imports/production
Revenue VAT/Sales Tax Reduction of excises on fuel


basic foods
Below the line Other (btl) Agriculture loan grace period
Ecuador Spending (Price) Subsidies to food Subsidize fertilizers for small and
companies medium farmers
Cash transfers Cash transfers to poor
households (mothers with
children up to age 2)
(Price) Subsidies to energy Fuel subsidies for gasoline and
companies diesel
Other/unspecified Spending Higher budgetary allocation for
intercultural and ethnic education
spending
Cash transfers Increased benefits for social
assistance to US$55 from US$50
Other (non-fiscal) Other (non-fiscal) Credit lines for small and medium
firms by public bank
Other (non-fiscal) Lower interest rates and credit
forgiveness of public banks
El Salvador Spending (Price) Subsidies to energy Subsidies for LPG
companies
(Price) Subsidies to energy Price freeze for gasoline and
companies diesel
Revenue Excises Temporary suspension of excise
taxes on fuels
VAT/Sales Tax Suspension of VAT on gasoline
and diesel
Other (non-fiscal) Price Freeze / incomplete pass- Incomplete pass-through of
through electricity price increases
Guatemala Spending (Price) Subsidies to energy Price subsidy for diesel
companies consumption
(Price) Subsidies to energy Price subsidy for diesel
companies consumption
(Price) Subsidies to energy Price energy subsidy on gas for
companies low-income countries
(Price) Subsidies to food Subsidy for agriculture inputs for
companies farmers
(Price) Subsidies to energy Price subsidy for electricity
companies consumption for low-consumption
households
Guyana Revenue Excises Reduction on excise tax rate
Honduras Spending (Price) Subsidies to energy Price freeze/subsidy for regular
companies gasoline price users (households,
producers, public service
transport)
(Price) Subsidies to energy Subsidy to eliminate electricity
companies tariffs for poor consumers who
consume less than 150 kilowatts
per
(Price) Subsidies to energy Subsidy on transportation (bus)
companies tariff
(Price) Subsidies to energy Subsidy to electricity tariffs
companies
(Price) Subsidies to energy Price freeze on LPG gas prices
companies for domestic use
Revenue VAT/Sales Tax Tax reduction for gasoline and
diesel of $ 0.4140 per gallon (10
lempiras)
Custom duties (import tariffs) Reduction of freight costs by 75
percent

Below the line Other (btl) Injection for the National

Agricultural Development Bank
(Banadesa) to provide subsidized
loans to agricultural sector
Other (btl) Food safety program and
government donations of seeds
and fertilizers to households in
extreme poverty
Other (non-fiscal) Other (non-fiscal) Hybrid work for public servants to
reduce fuel consumption
Jamaica Spending Cash transfers Cash transfers to vulnerable
households (food expenses)
Cash transfers Increased cash transfers for
transportation costs for students
Other subsidies to all companies Vouchers for taxi operators and
contract carriage operators
Cash transfers Cash transfers to those who open
bank accounts
Cash transfers Cash transfers
(Price) Subsidies to energy Price subsidies for households
companies with low consumption
Below the line Other (btl) Loans to public transportation
companies
Mexico Revenue Custom duties (import tariffs) Removal of import tariffs on some
staple foods
VAT/Sales Tax VAT and CIT deductions for
additional gasoline price
increases
Excises Reduction of excise tax on
petroleum products
Other (non-fiscal) Other (non-fiscal) Increase the production of
fertilizer
Price Freeze / incomplete pass- Agreement between government
through and large companies to freeze
prices on selected food staples
Nicaragua Spending Other subsidies to all companies Subsidy for transportation (public
transportation and taxi)
(Price) Subsidies to food Subsidy to diminish the cost of
companies wheat imports by 20%
(Price) Subsidies to energy Subsidy to freeze utility prices
companies
(Price) Subsidies to food Subsidy for fertilizers to small
companies producers
Paraguay Revenue Excises Temporary reduction of fuel
excises
VAT/Sales Tax Reduction of VAT for basic foods
Peru Spending Other subsidies to all companies Inclusion of Diesel 2, midgrade

and regular gasoline, and vehicle
LPG to Fuel Price Stabilization
Mechanism
(Price) Subsidies to food Subsidy for fertilizers
companies
Cash transfers Increase in the benefit of social
assistance
Semi-cash Increase voucher on LPG
purchases
Revenue Excises Suspension of fuel excise taxes
and VAT exemption
VAT/Sales Tax Exemption of VAT for basic food
products (chicken, corn, wheat,
sugar)

St. Vincent and the Grenadines Spending In-kind transfers In kind food support for vulnerable
households
(Price) Subsidies to food Subsidy for fertilizers
companies
Revenue VAT/Sales Tax Reduction of VAT for residential
electricity for lower consumption
cooking gas
flour
Other/unspecified Revenues Reduction of excises on electricity
bills
Custom duties (import tariffs) Reduction of custom duties for
fuel for electricity generation
Excises Temporary reduction of excises
on diesel and gasoline
Suriname Spending (Price) Subsidies to energy Subsidy for electricity products
companies
(Price) Subsidies to energy Subsidy for fuel products
companies
Annex Table 2.6 - Announced Responses to Higher Food and Energy Prices - Middle East North Africa
Pakistan
Algeria Spending (Price) Subsidies to food Subsidies of wheat sold to
companies agribusinesses
Cash transfers Unemployment benefit (new) for
young, first-time job seekers
Revenue Corporate income tax Suspension of increase in taxes
on sugar
VAT/Sales Tax Reduction of VAT and custom
duties on edible oil
Custom duties (import tariffs) Suspension of custom duties on
sugar
Other (non-fiscal) Export restriction Restriction of exports of imported
goods
Djibouti Spending Cash transfers Cash and in-kind food transfers to
Egypt Other (non-fiscal) Other (non-fiscal) Diversification of wheat imports
Export restriction Export ban on staple foods
Other (non-fiscal) Increased wheat import (change
in categorization of imported
wheat)
Other (non-fiscal) Increased procurement of wheat
from domestic producers
Iran Spending Semi-cash Coupons/vouchers for subsidized
bread
Wage bill Increased wages for public
servants
Cash transfers Temporary cash transfers to
targeted households
Iraq Spending Cash transfers Increased cash transfers
(Price) Subsidies to food Increased allocation to Ministry of
companies Agriculture to purchase
agriculture-related products
Semi-cash Increased in-kind food transfers
(ration cards)

(Price) Subsidies to energy Subsidy for oil production of

companies national oil company
Revenue Custom duties (import tariffs) Suspension of customs duties on
basic commodities
Below the line Other (btl) Financing external arrears of
energy to Iran
Other (non-fiscal) Other (non-fiscal) Suspension of the import ban of
some goods (foodstuffs,
consumer goods, medicines)
Jordan Spending (Price) Subsidies to energy Price freeze on retail price for oil
companies derivatives
Cash transfers Increased cash transfers to
Lebanon Spending (Price) Subsidies to food Subsidy to purchase wheat and
companies maintain the price (External grant)
Other (non-fiscal) Other (non-fiscal) Subsidy on rice
Morocco Spending Other subsidies to all companies Subsidy for transportation sector
workers
Revenue Custom duties (import tariffs) Removal of custom duties on
wheat
Oman Spending (Price) Subsidies to energy Increased subsidy for electricity
companies
Revenue VAT/Sales Tax Increase the list of VAT
exemption for food products
Pakistan Spending Cash transfers Increased cash transfers of 7.7
percent for low-income population
Semi-cash Price subsidy on some food items
in state-owned supermarkets
(Price) Subsidies to energy Subsidy to mitigate the fuel prices
companies (Price Differential Claim, PDC)
(Price) Subsidies to energy Subsidy to reduce the electricity
companies price for all residential and
commercial users
Cash transfers Cash transfer of PRs
2000/household for middle
income quintile and below who
are not eligible to the main cash
transfer program
Semi-cash Price subsidy on some food items
in state-owned supermarkets
Cash transfers Additional cash transfer of PRs
2000/household to the recipients
of existing Social Safety Net
Revenue Excises Reduction of petroleum
development levy for both
gasoline and diesel
VAT/Sales Tax Removal of sale tax for fuels
Sudan Other (non-fiscal) Other (non-fiscal) Relaxation of foreign exchange

regulations
United Arab Emirates Other (non-fiscal) Export restriction Export and re-export restrictions
of Indian wheat
Price Freeze / incomplete pass- Monitoring of basic consumer
through goods
West Bank and Gaza Spending (Price) Subsidies to energy Subsidy for electricity products
companies
(Price) Subsidies to energy Subsidy for fuel products
companies
(Price) Subsidies to energy Subsidy for water
companies
Revenue VAT/Sales Tax Reduction of VAT on bread

VAT/Sales Tax Reduction of VAT on selected

flour products
Custom duties (import tariffs) Reduction of tax base for imports
Annex Table 2.7 - Announced Responses to Higher Food and Energy Prices - Sub-Saharan Africa
Angola Spending Other/unspecified Spending Introduction of the food reserve
Benin Spending (Price) Subsidies to food Fertilizer subsidy
companies
Revenue Corporate income tax Rebate on freight costs
VAT/Sales Tax Subsidies for basic food products
(rice, flour, vegetable oil)
Custom duties (import tariffs) Freeze of fuel prices
Other (non-fiscal) Export restriction Export ban selected agricultural
products
Burkina Faso Spending (Price) Subsidies to food Support bakeries through the
companies payment of their water and
electricity bills for a maximum
CFAF 150,000
food imports
Below the line Price Freeze / incomplete pass- Maintaining bread price at CFAF
through 150.
Cameroon Revenue Corporate income tax Suspension of the income tax
installment
Other (non-fiscal) Export restriction Export bans on products facing
supply shortages
Chad Spending Other/unspecified Spending Increasing food security stocks
Comoros Spending (Price) Subsidies to food Subsidy to bakeries
companies
Côte d'Ivoire Revenue Custom duties (import tariffs) Reduction of custom duties on
wheat
petroleum and subsidies to
refineries (two measures)
Other (non-fiscal) Price Freeze / incomplete pass- Food price cap for selected food
through items
Export restriction Food export permits requirement
Price Freeze / incomplete pass- Food price cap for selected food
through items
Other (non-fiscal) Allowing wheat and other cheaper
and local cereals for bread
production
Other (non-fiscal) Reinforcing consumer protection,
including by enforcing price
posting on markets
DR Congo Spending Wage bill Increase in base wages for
certain civil servants
Revenue Personal income tax Reduction in individual income tax
VAT/Sales Tax Reduction of VAT on some
imported goods
Equatorial Guinea Revenue Custom duties (import tariffs) Suspension of fees at customs
Other (non-fiscal) Price Freeze / incomplete pass- Price freeze/reduction on selected
through food items
Gabon Revenue Custom duties (import tariffs) Deferral of customs duties and
taxes on specific products

Below the line Price Freeze / incomplete pass- Price ceiling by freezing the
through automatic adjustment mechanism
for retail gas price
Gambia, the Spending (Price) Subsidies to food Subsidy for fertilizer purchases for
companies groundnut producers
Revenue Custom duties (import tariffs) Reduction of revenues from fuel
products
Ghana Other (non-fiscal) Price Freeze / incomplete pass- Reduced levies on petroleum
through products to reduce price build-up
margins
Guinea Revenue Custom duties (import tariffs) Removal of customs duties on
some food products
Guinea-Bissau Spending In-kind transfers In-kind transfers for vulnerable
households
Revenue Other/unspecified Revenues Capping price of essential
products
Other/unspecified Revenues Capping prices on fuel
Kenya Spending (Price) Subsidies to food Subsidy for fertilizer

companies
(Price) Subsidies to energy Subsidy for fuel
companies
Lesotho Other (non-fiscal) Price Freeze / incomplete pass- Price cut on energy products
through
Price Freeze / incomplete pass- Price freeze on energy products
through
Liberia Spending (Price) Subsidies to food Subsidy on rice
companies
Madagascar Spending Wage bill Increased public wage (5 to 25
percent)
(Price) Subsidies to energy Increased subsidy to electricity
companies State-owned company
Revenue Other/unspecified Spending Reduction of employer's social
contributions to support an
increase in minimum wage
VAT/Sales Tax Reduction of VAT on fuels
Other (non-fiscal) Price Freeze / incomplete pass- Price ceiling on imported rice,
through sugar, oil, and cement
Malawi Revenue Custom duties (import tariffs) Removal of import duty on solar
lamps and solar fridges
VAT/Sales Tax Exemption of VAT on cooking oil
Mauritius Spending Pensions Increase in pensions

Other/unspecified Spending Increase petrol and travel
allowances
Cash transfers Increased cash transfers from
Rs500 to Rs1000
Revenue Personal income tax Reduction of income tax
Personal income tax Increase in exemption of travel
allowance deductible from income
tax
Mozambique Spending Cash transfers Cash transfers to poor
households
Other/unspecified Spending Subsidy to transport commuters
Namibia Revenue Excises Suspension of fuel levy

Niger Spending (Price) Subsidies to food Subsidy to protect the capital of
companies livestock producers
(Price) Subsidies to food Subsidy to purchase fertilizers
companies
Semi-cash Acquisition of cereals for sale at a
fixed price

Revenue Custom duties (import tariffs) Reduction of parafiscal tax on

fertilizers
millet
` Reduction of parafiscal tax on
livestock for some products
Senegal Spending (Price) Subsidies to energy Subsidies for fuel products and
companies electricity companies
(Price) Subsidies to food Subsidy for agriculture
companies
(Price) Subsidies to food Subsidy for agriculture
companies
Revenue Custom duties (import tariffs) Suspension of custom duties on
rice
Custom duties (import tariffs) Suspension of custom duties on
soybean meal, refined sugar,
corn, and wheat
VAT/Sales Tax Suspension of VAT on wheat
VAT/Sales Tax Revision of tax base for edible oil
Other (non-fiscal) Price Freeze / incomplete pass- Reduction of prices for key staple
through foods
Seychelles Spending Cash transfers Cash transfer targeted to
Sierra Leone Other (non-fiscal) Other (non-fiscal) Increase access to FX for food
imports
Other (non-fiscal) Increase access to FX for fuel
imports
South Africa Revenue Excises Temporary reduction in excise on
fuel
South Sudan Spending Wage bill Increase in public sector wage bill
São Tomé and Príncipe Spending Wage bill Increase in the minimum wage of
low-level civil servants
Tanzania Spending (Price) Subsidies to food Subsidy for fertilizers
companies
(Price) Subsidies to energy Reduction of excise duties on
companies gasoline, diesel, and kerosene
Cash transfers Cash transfer
cooking oil
VAT/Sales Tax Reduction of VAT on fertilizers
Togo Spending (Price) Subsidies to food Subsidy for fertilizers

companies
Wage bill Suspension of the reimbursement
of the one-month salary advance
Revenue VAT/Sales Tax Suspension of VAT for imported
and selected food products
VAT/Sales Tax Payment freezes of market ticket
taxes for informal business
owners
VAT/Sales Tax Suspension of motor vehicle tax
Below the line Other (btl) Reduction of interest rate for
loans from a program to promote
financial inclusion
Price Freeze / incomplete pass- Price cap for local and imported
through food products
Zambia Revenue Custom duties (import tariffs) Reduction of custom duties on
wheat

Excises Increase of excises on fuel

VAT/Sales Tax Reduction of VAT on fuel
products
Zimbabwe Revenue Excises Reduction of excise on diesel and
petrol
basic groceries
Other (non-fiscal) Other (non-fiscal) Increase access to FX for
bakeries and lowering of bread
(two measures)
Other (non-fiscal) Removing of licensing
requirements for grain imports

Annex III. Existing Food and Energy Subsidies

Annex Table 3.1 - Subsidies for Food and Energy Products - Advanced economies
Size Size Size
Type of Type of 2020 2021 2022
Country
Subsidy Product (% of (% of (% of
GDP) GDP) GDP)
Cyprus energy (Natural) gas . . 0
Diesel . . 0
Gasoline . . 0
LPG . . 0
Estonia energy Diesel 0.1 . .
Energy
. . 0.02
Subsidies Total
Other
0.01 . .
fuel/unspecified
Portugal energy (Natural) gas . . 0.076
Diesel . . 0.067
Gasoline . . 0.032
LPG . . 0.0038
Slovak
energy Electricity . . 0.1
Republic
Spain energy Diesel . . 0.2
Energy
. . 0.2
Subsidies Total
Diesel and
Sweden energy . . 0.05
Gasoline total
Electricity . . 0.1
Annex Table 3.2 - Subsidies for Food and Energy Products - Caucasus and Central Asia
Size Size Size
Type of 2020 2021 2022
Country Type of Product
Subsidy (% of (% of (% of
GDP) GDP) GDP)
Azerbaijan energy (Natural) gas 2.1 1.6 .
Diesel 0.64 0.27 .
Electricity 1.8 1.5 .
Energy Subsidies Total 4.7 3.4 .
Gasoline . 0 .
Other fuel/unspecified 0.85 0.36 .
Georgia food Fertilizer . . 0.05

Kyrgyz
energy Electricity . 0.6 0.9
Republic
Heating . 0.6 0.9
Uzbekistan energy (Natural) gas 2.5 2.1 1
Electricity 2.8 3.3 2.8
food Bread/Wheat/Grains/Cereal/Flour . 0.6 0

Annex Table 3.3 - Subsidies for Food and Energy Products - Emerging and Developing Asia
Size Size Size
Type of 2020 2021 2022
GDP) GDP) GDP)
India energy LPG 0.19 0.014 0.045
food Bread/Wheat/Grains/Cereal/Flour 2 1.2 1.1
Fertilizer 0.65 0.65 0.8

Indonesia energy Electricity 0.4 0.46 0.58
Energy Subsidies Total 0.71 0.83 0.96
Malaysia energy Energy Subsidies Total 0.1 0.7 2.4
Nauru energy Energy Subsidies Total 0.01 0.02 0.02
Palau energy Energy Subsidies Total . . 2.1
Diesel (Pantawid Pasada

Philippines energy Program for transportation in the 0 0.005 0.02
Philippines)
Sri Lanka energy Diesel -0.03 0.21 .

Electricity . 0.28 .
Gasoline 0.06 0.15 .
Thailand energy (Natural) gas . . 0.02
Electricity . . 0.37
Energy Subsidies Total . . 0.49
LPG . . 0.23
Other fuel/unspecified . . 0
Tonga energy Electricity . . 0.15
Annex Table 3.4 - Subsidies for Food and Energy Products - Emerging and Developing Europe
Type of Type of Size 2020 Size 2021 Size 2022
Country
Subsidy Product (% of GDP) (% of GDP) (% of GDP)
Albania energy Diesel 0.06 0.06 0.09
Electricity . . 1
Hungary energy Gasoline . . 1
Kosovo energy Electricity . 0.52 1
Moldova energy (Natural) gas . 0.83 1.2
Electricity . . 0.33
Poland energy (Natural) gas . . 0.34
Other
fuel/unspecified . . 0.1
- Coal
Serbia energy (Natural) gas . 0.5 0.6
Electricity . . 0.1

Annex Table 3.5 - Subsidies for Food and Energy Products - Latin America
Size 2020 Size 2021 Size 2022
Type of
Country Type of Product (% of (% of (% of
Subsidy
GDP) GDP) GDP)
Antigua
and energy Electricity 0.6 . .
Barbuda
Other energy/unspecified -0.2 0.2 0.6
Argentina energy (Natural) gas . . .
Electricity . . .
Bahamas,
energy Electricity 0.61 0.73 0.77
the
Kerosene 0.16 0.16 0.18
LPG 0.074 0.075 0.082
Other fuel/unspecified 0.85 0.8 0.78
Bolivia energy Energy Subsidies Total 1.7 1.3 3.7
Other (utilities) . . 0.042
food Staple foods 0.1 0.1 0.056
Colombia energy Energy Subsidies Total 0.03 0.6 1
Costa Rica energy Diesel 0.0017 0.0018 0.0019
Gasoline 0.0013 0.00095 0.00062
Dominican
Republic
Gasoline . 0.24 0.65
food Bread/Wheat/Grains/Cereal/Flour . . 0.049
Chicken (domestic) . . 0.011

Fertilizer . 0.031 0.019
Flour (domestic) . . 0.0087
Seeds . . 0.00041
Staple foods . . 0.0073
Ecuador energy Diesel . 0.0083 1.1
Fuel oil . 0.00036 0.076
Fuel subsidies for gasoline and
. . 0.14
diesel
Gasoline . 0.0036 0.5
LPG . 0.008 0.82
Other (utilities) . 0.0006 0.083
El Salvador energy Diesel . . 0.22
Gasoline . . 0.29
LPG 0.3 0.3 0.7
Guatemala energy Electricity 0.19 0.13 0.067
food Other food/unspecified 0.35 0.31 0.44
Honduras energy Electricity . 0.1 .
. . 0.25
. . 0.5
Gasoline and diesel . . 0.019
LPG . 0.066 0.2
Premium gasoline, regular and
. 0.082 .
diesel fuels
Urban transportation . . 0.064

food Essential foods 0.23 . .

Mexico energy Energy Subsidies Total . . 0.5
St. Vincent
and the energy Electricity . . .
Grenadines
Energy Subsidies Total . . .
food Bread/Wheat/Grains/Cereal/Flour . . .
Fertilizer . . .
Suriname energy Electricity 2.3 4.1 4.3
Gasoline . . 0.6
Trinidad
and energy Fuel Subsidies Total 0.3 0.04 0.2
Tobago
Venezuela energy (Natural) gas 0.84 . .
Electricity 8.7 . .
Gasoline 8.3 . .
Annex Table 3.6 - Subsidies for Food and Energy Products - Middle East North Africa Pakistan
Size Size Size
Type of 2020 2021 2022
GDP) GDP) GDP)
Algeria energy Energy Subsidies Total . 12 .
Bahrain food Bread/Wheat/Grains/Cereal/Flour 0.077 . .

Meat 0.22 . .
Djibouti energy Diesel 0 0 0.0071
Kerosene . . 0.0031
Iraq energy Electricity 6.2 6.9 8.6
Jordan energy Diesel 0 0 0.6
Gasoline 0 0 0.4
Kerosene 0 0 0.01
food Bread/Wheat/Grains/Cereal/Flour 0.1 0.2 0.2
Kuwait energy Electricity 3.6 3.9 2.8
Gasoline 1.2 1.2 1.2
Lebanon food Bread/Wheat/Grains/Cereal/Flour . . .

Libya energy Electricity 2.7 0.6 .
Energy Subsidies Total 16 7.4 .
Other fuel/unspecified 13 6.8 .
Mauritania energy Diesel 0.005 0.0037 0.016
Electricity 0.024 0.024 0.03
- - -
Gasoline
0.002 0.0016 0.0005
- - -
Kerosene
0.001 0.0005 0.0002
- - -
LPG
0.005 0.0035 0.0006
-
Other fuel/unspecified 0.0021 0.009
0.004

8E-
food Fertilizer 0.0025 0.0039
04
Staple foods 0.003 0.0015 0.0042
Morocco energy Other energy/unspecified 0.008 1.1 0.017

Oman energy Electricity 2.6 1.7 1.3
Gasoline 0.081 0.12 1.3
Pakistan energy (Natural) gas . 0.17 0.08
Diesel 0 0.28 0
Electricity . 0.76 0.44
Electricity (circular debt related) . 0.84 0.26
Electricity (new circular debt) 0.53 1.3 .
Gas (new circular debt) . . .

Gasoline 0 0.093 0
food Fertilizer . 0.037 0.026
Food (UCT) . 0.031 0.021
Other food/unspecified . 0.024 0.018
Saudi
energy Energy Subsidies Total 3.6 5 .
Arabia
Sudan energy All fuel subsidies . . .
Electricity . . .
Tunisia energy Diesel, gasoline, LPG, kerosene 1.1 1.8 2.9
Electricity and natural gas 0.084 0.79 2.3
United
Arab energy Other energy/unspecified 2.7 2.1 .
Emirates
West
Bank and energy Fuel 0.4 0.43 1
Gaza
Yemen energy Electricity 0.007 0.01 0.019
Annex Table 3.7 - Subsidies for Food and Energy Products - Sub-Saharan Africa
Size Size Size
Type of 2020 2021 2022
GDP) GDP) GDP)
Angola energy Other fuel/unspecified . 2.6 .

Benin energy Gasoline and Diesel 0 . 1
food Total cost food subsidies . . 0.048
Burkina
energy Energy Subsidies Total 1 0.3 0.7
Faso
Petroleum-derived products and
1 0.3 0.7
gas

Sugar, rice, and vegetable oil . . 0.13

Cameroon energy . 0.5 2.9
Energy Subsidies Total . 0.5 2.9
Central
African energy Other energy/unspecified 0.65 0.4 0.4
Republic
Chad energy Energy Subsidies Total . 0.012 1.1

Comoros energy Diesel . . 0.5
Electricity . 0.54 0.49
Gasoline . . 0.06
Kerosene . 0.28 0.49
Côte
energy Diesel and Gasoline (total) . . 1.2
d'Ivoire
. . .
Kerosene . . .
LPG . . .
DR Congo energy Diesel . . 0.3
Gasoline . . 0.2
Kerosene . . 0.061
Equatorial Fuels (diesel, gasoline,
energy 0.3 0.5 0.7
Guinea kerosene, and Jet A-1)
Gabon energy Other fuel/unspecified 0.14 0.38 0.8
Gambia, the energy Energy Subsidies Total 0.12 0.16 0.69

Total 0.12 0.16 0.69
food Fertilizer 0.47 0.19 0.45
Ghana energy Electricity 2.6 1.5 1.5
food Fertilizer . . .
Guinea energy Diesel . . 0.9
Energy Subsidies Total 0 0 2.3
Gasoline . . 1.4
Kerosene . . 0
Kenya energy Energy Subsidies Total 0 0 0.8
Other energy/unspecified . . 0.02

. . 0.8
Lesotho energy (Natural) gas 0 0 0
Diesel 0 0 0.04
Electricity 0 0 0
Energy Subsidies Total 0 0 0.02
Gasoline 0 0 0.02
Heating 0 0 0
Kerosene 0 0 0
LPG 0 0 0
Other (utilities) 0 0 0

Other energy/unspecified 0 0 0
0 0 0
0 0 0
0 0 0
Other fuel/unspecified 0 0 0
food Bread/Wheat/Grains/Cereal/Flour 0 0 .
Fertilizer 0.059 0.069 0.097
Meat 0 0 0
Oil 0 0 .
Other 0 0 0
0 0 0
0 0 0
. . .
Other food/unspecified 0.015 0.015 0.015
Staple foods 0.041 0.043 0.049
Sugar 0 0 .
Madagascar energy Diesel -0.24 . .
Gasoline -0.16 . .
Kerosene 0 . .
Total for Diesel, Gasoline and
-0.41 0.34 1.7
Kerosene
Malawi food Fertilizer 0.89 1.6 0.89
Maize seed 0.18 0.13 0.06
Mauritius energy Diesel . 0.43 .
Gasoline . 0.12 .
LPG 0.44 0.3 .
food Bread/Wheat/Grains/Cereal/Flour 0.46 0.38 .
Nigeria energy Gasoline 0.1 1.1 2.5
Rwanda energy Energy Subsidies Total . . 0.3
Senegal energy (Natural) gas . . .
Diesel 0.043 0.16 0.91
Gasoline . . 0.22
LPG . . 0.28
Other fuel/unspecified . . 0.083

Fertilizer 0.36 0.32 0.41
Meat . . .
Oil . . 0.11
Staple foods . . 0.041
Sugar . . 0.006
Sierra
Leone
food Agriculture and food 0.001 0.28 0.092
South Africa energy Diesel 0.29 0.29 0.39
Gasoline 0.37 0.38 0.55

Tanzania energy Diesel . . 0.3

Gasoline . . 0.3
Kerosene . . 0.3
food Fertilizer . . 0.1
Togo energy (Natural) gas 0.038 0.037 .
Diesel, gasoline, and Kerosene 0.11 0.18 2.1
Electricity 0.11 0.043 .
2E-
food Bread/Wheat/Grains/Cereal/Flour 0.0009 0.1
04
Fertilizer . . 0.35
VAT suspension on various
. . 0.21
imported food items
Zambia energy Electricity 0.049 0.055 0
Fuel (diesel, petrol, kerosene) 1.5 3.8 2.3
food Fertilizer 3.6 3 2.8
Oil . 0.1 .
Zimbabwe food (Fertilizer, seed, pesticides) 0.81 0.83 0.36
Bread/Wheat/Grains/Cereal/Flour 0.15 0.052 .
Other food/unspecified 0.04 . .

Annex IV. Policy Measures Announced by the UK

and France
A. United Kingdom
Since the beginning of this year, the UK government has introduced several rounds of measures to mitigate the
social impact from the increase in the cost of living, especially in energy prices. The untargeted package to
households benefiting 28 million household had an initial envelope of £350 discount on their energy bill. In late
May, the size of energy bill discount was increased to £650 for all households, with some targeted measures
for pensioners and disabled. In September, in the context of the so-called ‘mini budget’, the UK government
announced a program called ‘Energy Price Guarantee (EPG)’ to shield households and firms against rising
energy costs. For households, EPG will be effective till March 2024, which the Autumn Statement modified to
make less generous, while adding a new round of targeted support to the same vulnerable groups included in
the May package. Some of the previously announced measures, such as the £400 rebate on household energy
bills from October 1, are still effective.
▪ Energy Price Guarantee (EPG). It limits the price that is charged for each unit of energy and hence
under this scheme, the energy bill will still depend on the amount of electricity consumer by
households.9 For households on a standard variable tariff the average unit price will be limited to 34.0
p/kWh for electricity and 10.3 p/kWh for gas, inclusive of VAT, from October 1. For households on a
fixed rate tariff who currently have unit rates above the EPG unit price reductions of up to 17 p/kWh for
electricity and 4.2 p/kWh for gas will apply. For households whose fixed rate tariff is below the EPG
rates, a floor unit price for gas averaging at 10.3 p/kWh and for electricity averaging at 34 p/kWh for
direct debit customers will be introduced.
▪ Temporary removal of green levies on household bills. It saves about £150 per household.11
▪ Support for businesses. A 6-month scheme of energy price cap will be applied for businesses and
other non-domestic energy users (including charities and public sector organizations like schools). For
businesses that do not have fixed contracts, they will benefit from the same energy price cap as
households during this time. After the initial 6-month scheme, the government will provide ongoing
focused support for vulnerable industries.
▪ Measures to increase supply. These include (i) launching a new oil and gas licensing round; (ii)
acceleration of new sources of energy supply, including oil and gas from the North Sea and clean
energy; (iii) undertake fundamental reforms to the structure and regulation of energy market.
▪ Energy bill support scheme (EBSS). It was announced in May 2022 by the previous government.
Key measure of the scheme is a universal discount of £400 on electricity bills for any consumers in the
UK with a domestic electricity connection. The £400 discount will be paid in six monthly instalments
beginning October 1st. In October and November, households will see a £66 discount, which will rise
to £67 a month from December through March 2023.

B. France
Since the onset of the Ukraine war, the French government introduced a wide array of measures to support
households to mitigate the rise in the cost of living. These included price controls (“bouclier tarifaire”), in
particular: (i) a freeze of regulated gas prices at the October 2021 levels, with gas suppliers compensated for
the difference between market and regulated prices; and (ii) a cap on the increase in regulated electricity prices
at 4 percent from February 2022 for the duration of one year. This is done by lowering electricity excise taxes to
the lowest level allowed under EU rules, requiring EDF (state-owned power generation company) to provide an
additional 20TWh of nuclear power to distributors at a below-market price and by compensating suppliers for
the difference between market and regulated prices. Unlike other European countries France is less dependent
on imported energy with three-quarters of the country’s electricity generated from nuclear powers plants.
However, in 2022 nuclear facilities did not function at a full capacity due to maintenance issues causing
outages at these plants.
On September 14, France introduced additional measures to help households cope with rising energy costs, in
particular:
▪ Extensions of controls on regulated gas and electricity prices. This allows for a 15 percent
increase as of January 2023 (gas) and February 2023 (electricity). The cap is estimated to cost 16
billion euros (government estimates). Without the announced extension, these price controls would
have expired by end-2022 (gas) or early 2023 (February, electricity). For households that rely on gas
for heating, the energy bill for this winter will remain at around 25 euros per month (as opposed to 200
euros without the extension). For households that use electricity, the energy bill would be kept at 20
euros per month (as opposed to 180 euros without the extension).
▪ Cash transfers to lower income household. Some 12 million households in the bottom two income
quintiles will receive an additional “cheque energie” in the amount of €100-200, varying with income.
The additional cheque energie that was provided in 2021 targeted the bottom quintile (5.8 million
households), with a fixed amount of €100, so eligibility has widened while generosity has increased.
▪ Extension and expansion of fuel subsidy (“remise carburant”). In March 2022, the government
provided subsidy at the gas stations, which has been €18ct/liter, which was set to expire in October
2022. On September 1, the government extended the subsidy until the end of this year and increased
the subsidy to €30ct/liter.

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Policy Responses to High Energy and Food Prices
Working Paper No. WP/2023/074

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Policy Responses to High

Energy and Food Prices

IMF Working Papers describe research in

IMF Working Paper

Policy Responses to High Energy and Food Prices

Authorized for distribution by Rodrigo Cerda

JEL Classification Numbers: H23, H31, H32, E31

Keywords: Energy prices; food Prices; cost of living; social policy

[email protected]; [email protected]; [email protected];

Policy Responses to High Energy

Prepared by David Amaglobeli, Mengfei Gu, Emine Hanedar, Gee Hee

II. Trends in International Energy and Food Prices ....................................................................................... 4

III. Social Impact of High Energy and Food Prices ........................................................................................ 6

IV. Announced Policy Measures and Responses .......................................................................................... 8

V. Policy Discussion ....................................................................................................................................... 19

Annex I. Data Collection and Methodology .................................................................................................... 26

Annex III. Existing Food and Energy Subsidies ............................................................................................. 56

Annex IV. Policy Measures Announced by the UK and France .................................................................... 64

INTERNATIONAL MONETARY FUND 2

INTERNATIONAL MONETARY FUND 3

II. Trends in International Energy and Food

INTERNATIONAL MONETARY FUND 4

Figure 1. International Price Developments

US Dollars per Million Metric British Thermal Unit

Source: IMF’s Primary Commodity Prices.

Source: UN Food and Agriculture Organization.

INTERNATIONAL MONETARY FUND 5

Source: World Bank, Commodity Price Data

III. Social Impact of High Energy and Food

Figure 2. Share of Food in Consumer Basket and GDP per Capita

Source: IMF CPI database and the IMF WEO.

INTERNATIONAL MONETARY FUND 6

INTERNATIONAL MONETARY FUND 7

Figure 3. Share of Various Budget Components in Overall Household Expenditure

Sources: Global Consumption Data, World Bank, circa 2010.

IV. Announced Policy Measures and Responses

A. Pass-through of Energy and Food Prices

INTERNATIONAL MONETARY FUND 8

Figure 4. Estimates of Pass-Through of Prices for Fuel, by region

CCA &MENAP CCA &MENAP

Oil Exporters Oil Exporters

Oil Importers Oil Importers

Dec20-Dec21, Average Jan22-Apr22, Average Dec20-Dec21, Average Jan22-Jul22, Average

INTERNATIONAL MONETARY FUND 9

Figure 5. Correlation between Domestic and International Food Prices

-0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5

Source: IMF staff calculations.

B. Survey of IMF Country Teams on Policy Responses

INTERNATIONAL MONETARY FUND 10

Figure 6. Policy Responses

Source: IMF DEFPA country desk survey.

Policy Measures by Country Income Group

INTERNATIONAL MONETARY FUND 11

Figure 7. Announced Measures by Income Group

INTERNATIONAL MONETARY FUND 12

Figure 8. Distribution of Announced Policy Measures by Product

Energy Food Other

0 2 4 6 8 0% 20% 40% 60% 80% 100%