New Delhi, March 20 Reducing highway speed limits by at least 10 km/h, switching to electric cooking, avoiding air travel where alternatives are possible, and increasing car sharing – these are among the recommendations made in a new report by the International Energy Agency (IEA) to ease the economic impact on consumers from oil market disruptions stemming from the Middle East conflict.
The conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20 per cent of global oil consumption, reduced to a trickle.
Around 20 million barrels per day of crude oil and oil products typically transit the Strait. The loss of these flows has significantly tightened markets, pushing crude oil prices above USD 100 per barrel and driving even sharper increases in refined products such as diesel, jet fuel, and liquefied petroleum gas (LPG).
According to the report, restoring transit through the Strait remains essential to stabilize global energy markets. In the meantime, countries are taking action on both supply and demand.
On March 11, IEA member countries agreed to release 400 million barrels of oil from emergency reserves – the largest stock draw in the agency’s history.
"As the global energy authority, the IEA is doing everything we can to support the stability of energy markets. We have recently launched the largest ever release of IEA emergency oil stocks – and I am in close contact with key governments around the world, including major energy producers and consumers, as part of our international energy diplomacy," said IEA executive director Fatih Birol.
However, supply-side measures alone cannot fully offset the scale of the disruption. Addressing demand is a critical and immediate tool to reduce pressure on consumers by improving affordability and supporting energy security.
The IEA report identifies 10 measures that can be implemented quickly by governments, businesses, and households.
"The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market. In the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe," said Birol.
The report has recommended implementing work from home where possible.
"Working from home displaces oil use from commuting, particularly where jobs are suitable for remote work. Highway speed limits should be reduced by at least 10 km/h as lowering speed reduces fuel use for passenger cars, vans, and trucks. A shift from private cars to buses and trains can quickly reduce oil demand," it said.
The report noted that number-plate rotation schemes can reduce congestion and fuel-intensive driving.
"Increase car sharing and adopt efficient driving practices, as higher car occupancy and eco-driving can lower fuel consumption quickly. Efficient driving for road commercial vehicles and delivery of goods…better driving practices, vehicle maintenance, and load optimization can cut diesel use.
"Divert LPG use from transport..shifting bi-fuel and converted vehicles from LPG to gasoline can preserve LPG for cooking and other essential needs. Avoid air travel where alternative options exist, as reducing business flights can quickly ease pressure on jet fuel markets," it said.