Iran has an 82 percent subsidy on gasoline, Venezuela has a 96 percent subsidy on diesel fuel. Progressively phasing out fossil fuel subsidies could cut global primary energy demand an estimated 5 percent by 2020 - equivalent to the current consumption of Japan, the Republic of Korea and New Zealand combined (IEA 2010e). Phasing them out immediately could reduce global energy demand 5.8 percent by 2020. Unreliable energy supplies encourage firms to invest in expensive and inefficient standby power systems, thus raising energy costs.