Government funding for oil and gas is becoming harder to justify
Eliminating fossil fuel subsidies
Increased fiscal pressures and net-zero carbon pledges should pave the way to permanently phase out subsidies
Subsidies are intended to stimulate production and demand for fossil fuels. But in times of deficit, when budgets can hardly accommodate essential health expenditure, it is difficult to justify their use. And fossil fuel markets demonstrate they can survive on their own. Why, indeed, would society want to direct scarce resources towards fossil fuel subsidies? Mainly because industry lobbyists and consumer advocates are working hard to convince lawmakers to do so. It is imperative that society understands their detrimental effect on both markets and the economy, and importantly how much subsidies actually cost. When prices were low and fuel subsidies for consumers could not be justified, most
Also in this section
30 January 2026
As KPC deepens international partnerships, expands capacity and builds on breakthrough offshore success, Shaikh Nawaf S. Al Sabah says oil interdependence—not self sufficiency—will define the energy system for decades to come
29 January 2026
Caught between LNG risks from across the Atlantic and the wounds from Russian gas dependence, Europe needs more than a simple diversification strategy
28 January 2026
The alliance looks to bolster market management credibility by bringing greater clarity and unity to output cuts and producer capacity later in 2026
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
