Experts Criticized Fossil Fuel Subsidy Reforms
A new editorial argues that most government attempts to phase out fossil fuel subsidies have failed within three years.
Updated on Sept. 25, 2026 in Energy
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Paasha Mahdavi and Michael Ross published an editorial in Science examining the high failure rate of global fossil fuel subsidy reforms. The researchers found that most attempts by the 21 biggest subsidizers to cut these financial supports were quickly reversed.
Why it matters
Governments frequently use subsidies to protect consumers from rising energy costs, but removing them remains difficult due to intense public scrutiny of daily gasoline prices. This dynamic complicates the global transition away from fossil fuel dependency.
Between 2016 and 2023, the 21 largest subsidizing nations attempted 130 reforms to fossil fuel pricing. Data shows 70% of these efforts collapsed within one year, with 90% failing to persist past the three-year mark.
The players
Paasha Mahdavi
He is an energy policy expert who co-authored the editorial regarding the failure of fossil fuel subsidy reforms.
Michael Ross
He is an energy policy expert who co-authored the editorial regarding the failure of fossil fuel subsidy reforms.
The details
Governments typically fund these subsidies by utilizing taxes, borrowing, or reducing other spending to bridge the gap between market prices and consumer costs. Researchers noted that countries like Indonesia and the Netherlands are testing alternatives, such as civil servant work-from-home days or off-peak rail passes, to mitigate price shocks.
Timeline
Between 2016 and 2023, 21 countries attempted subsidy reforms.
Mexico ended its fuel subsidies in 2017.
The editorial was published in Science on September 25, 2026.
The Big Picture
This editorial uses the 2017 Mexican fuel subsidy removal as a rare benchmark to contrast with the high failure rates observed in other global reform efforts. The findings indicate that most subsidy policies are locked in a cycle of instability rather than a permanent transition.
As governments continue to experiment with subsidy alternatives, consumers may see shifts toward public transit incentives or work flexibility programs. These changes are intended to replace direct fuel price suppression without causing sudden spikes in daily energy costs.
The takeaway
The struggle to remove fossil fuel subsidies highlights how deeply public sensitivity to energy prices dictates national policy. Successful reform likely requires alternative support structures that provide clear value to the public beyond simple fuel price controls.
Further reading
Explore deeper analysis on the future of global power usage in the Energy section.
Source note: This article includes information reported by Mongabay.
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Should governments provide subsidies to keep consumer gasoline prices low?
