Getting energy prices right is critical for sound policy-making. But because of government energy subsidies, prices that consumers pay in many countries are often well below their real market value, let alone the price that would reflect energy’s full environmental and social cost. The estimated value of global fossil fuel consumption subsidies decreased by 15% to $260 billion in 2016, the lowest level since the International Energy Agency started tracking these subsidies in the World Energy Outlook (WEO) 10 years ago. Analysis in the new WEO-2017 showed that for the first time the largest share of global subsidies that benefit fossil fuel consumption went to keep electricity prices artificially low (41% of the global total), ahead of oil (40%) and natural gas. But while the figure for fossil fuel consumption subsidies may be coming down, it remains much higher than estimated government support to renewable energy: subsidies for renewables in power generation amounted to $140 billion in 2016. There can be good reasons for governments to make energy more affordable, particularly for the poorest and most vulnerable groups. But many subsidies are poorly targeted, disproportionally benefiting wealthier segments of the population that use much more of the subsidized fuel. In practice, the effect of most subsidies is to encourage consumers to waste energy, putting added pressure on energy systems and the environment, and often straining government budgets. Such subsidies are a roadblock on the way to a cleaner and more efficient energy future; that is why the IEA continues to be a strong supporter of international efforts to get them removed and why the WEO has consistently been shining a spotlight on this issue. The dip in oil subsidies in 2016 and the higher share of electricity reflect some short-term price developments but also reveal a new set of challenges to remove them. Reforms in many countries often focus in the first instance on oil products used for transportation. Some notable developments in 2016 were in the Middle East, where many countries increased prices for gasoline and diesel, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. Although the Middle East remains the region with the largest share of total subsidies (some 30% of the total), the estimated value of these subsidies has declined sharply, from around $120 billion in 2015 to $80 billion the following year.