Reproduced from IEA; Chart: Axios Visuals
An International Energy Agency analysis shows that subsidies for consumers' use of gasoline, diesel and other fuels dropped sharply last year — but are headed for a rebound.
Why it matters: The IEA and many policymakers say phasing out subsidies is a tool for combating climate change.
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But it's tricky. While subsidies often flow to people who don't need them, they also help poor consumers obtain needed energy.
The big picture: The pandemic-driven collapse in fuel demand and prices dropped the aggregate value greatly last year.
But IEA said rebounding prices and use, alongside "hesitant progress on pricing reforms," will likely push them back up this year.
"This is a worrying trend at a time when countries need to be redoubling efforts to accelerate energy transitions," it notes.
How it works: The tally above looks at consumption subsidies for oil, power, gas and coal. The top five countries are Iran, China, India, Saudi Arabia and Russia.
Go deeper: Read the IEA commentary
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