Amid Energy Price Shocks, Five Lessons to Remember on Energy Subsidies

Energy commodity prices have been rising since 2021, as economic recovery from COVID-19 led to a rebound in energy demand across the globe, while supply remained constrained. The Russian invasion of Ukraine, and subsequent supply uncertainties and sanctions, further exacerbated the situation, pushing Brent crude oil and natural gas prices to near-historic highs, within knock-on effects on power sectors. The World Bank’s latest Commodity Markets Outlook anticipates that energy prices will rise more than 50 percent in 2022 before easing in 2023 and 2024.