Abuja — Seeking to offset rising energy costs, governments spent more than $1 trillion on subsidies for the consumption of fossil fuels last year, an all-time high, the International Energy Agency (IEA), has said.

Russia's invasion of Ukraine roiled energy markets in 2022, as Russia cut natural gas exports to Europe, and Western nations moved to wean off Russian oil.

The drop in supply sent prices soaring globally. To shield consumers from rising costs, governments further subsidised the consumption of oil, natural gas, coal, and electricity, particularly in developing countries.

Oil subsidies rose 85 per cent between 2021 and 2022, while subsidies for natural gas and electricity more than doubled year on year, according to a new report from the agency.

The analysis only accounts for direct fossil subsidies. It does not account for the high cost of pollution or climate disasters, which are borne by the public but not included in the price of fossil fuels.