LONDON - Some emerging market countries are finding it tough to maintain subsidies on fuel prices as oil has climbed to new peaks, the International Energy Agency said on Tuesday.

Most emerging economies have some form of price controls and are understandably reluctant for economic, political and social reasons, to allow a sharp rise in domestic oil prices, the agency said in its monthly Oil Market Report.

"At the same time, maintaining price controls is leading to severe distortions and mounting costs for public purses," said the IEA, adviser to 27 industrialized countries.

Oil prices have doubled in the past year and hit a record of $126.40 on Monday. ... Read full article