The International Energy Agency (IEA) issued an advisory on Friday urging people to take certain steps, such as working from home and avoiding air travel. These measures are designed to ease oil price pressures on consumers.
The US-Israeli war with Iran has led to a spike in energy prices, raising fears of inflation around the world. The recommendation comes shortly after the IEA agreed to a record release of oil from strategic stockpiles to deal with the fallout from the US-Israeli war with Iran.
Last week, the IEA also shared an update on the release of emergency oil, with several reports saying it will soon begin flowing into global markets to address supply disruptions.
The world energy watchdog said its proposals were steps governments, businesses and households could take to ease the economic impact of disruptions to oil markets.
The conflict has caused the biggest supply disruption in the history of the world oil market, with shipping through the Strait of Hormuz, which normally carries around 20% of global oil consumption, reduced to a trickle, the agency said in a briefing.
Oil prices rise due to tensions in the Middle East
Oil prices jumped to more than $100 a barrel after the US and Israel attacked large-scale retaliation by Iran and Tehran against US bases in Middle Eastern countries.
For India, which imports about 88% of its oil needs, a surge in global prices poses a major macroeconomic risk as it could widen the current account deficit, put pressure on the rupee and raise fuel costs for households and businesses.
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While petrol and diesel prices in the country’s major metros have remained stable over the weeks, liquefied petroleum gas (LPG) rates have increased by ₹60 per cylinder.
Recommended measures to reduce fuel consumption:
1. Work from home: The IEA has urged people to work remotely if possible, as it displaces oil consumption from commuting.
2. Reduce highway speed: It is also recommended to lower highway speed limits by at least 10 km/h as this helps reduce fuel consumption for vehicles such as cars, vans and trucks.
3. Encourage public transport: Commuters are encouraged to switch from private cars to public transport such as buses and trains when travel is necessary.
4. Alternative access for private cars to the roads: The energy regulator has called for number plates to be rotated on different days in major cities, as such a move can reduce traffic congestion and fuel-efficient driving.
5. Increase car sharing: Higher car occupancy and green driving can quickly reduce fuel consumption. It is also recommended to adopt effective management practices:
6. Efficient commercial vehicle driving: Better driving practices, vehicle maintenance and load optimization for deliveries can reduce diesel consumption.
7. Diversion of LPG use from transport: By converting dual-fuel and converted vehicles from LPG to petrol, LPG can be conserved for cooking and other basic needs.
8. Choose alternative air travel options: If possible, curtailing commercial flights can quickly relieve pressure on jet fuel markets.
9. Switch to other cooking solutions: Promoting electric cooking and other modern options can reduce dependence on LPG wherever possible.
10. Leverage the flexibility of petrochemical feedstocks: The industry can help free up LPG for essential uses while reducing oil consumption through rapid operational improvements.
“The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the world oil market. If not resolved quickly, the impact on energy markets and economies will become increasingly severe,” IEA Executive Director Fatih Birol warned.
