IEA Urges Fuel Saving Measures: Work From Home, Speed Limits & Carpooling Amid Oil Crisis

The global oil market is facing its largest supply disruption in history, triggered by conflict in the Middle East, and the International Energy Agency (IEA) is now advising governments to implement a range of emergency measures to curb demand. These recommendations, ranging from reduced highway speeds to encouraging operate-from-home policies, signal a growing concern that supply-side solutions alone won’t be enough to stabilize soaring oil prices and prevent fuel shortages. The situation is particularly acute given concerns about the security of crucial shipping lanes through the Strait of Hormuz, a waterway handling around 20% of global oil consumption.

Strain on Global Supply Chains

The conflict has severely constricted the flow of crude oil and refined products through the Strait of Hormuz, with volumes reduced to a trickle. Approximately 20 million barrels per day typically transit this vital chokepoint. This disruption has pushed crude oil prices above $100 per barrel and driven even sharper increases in the cost of diesel, jet fuel, and liquefied petroleum gas (LPG), impacting consumers and businesses worldwide. The IEA has already authorized the release of 400 million barrels of oil from emergency reserves – the largest stock draw in its history – in an attempt to alleviate the price shock, but acknowledges that this is not a complete solution. As reported on March 11, 2026, this release represents a significant, but temporary, intervention.

Demand-Side Measures: A Ten-Point Plan

The IEA’s new report outlines ten specific measures governments, businesses, and individuals can take to reduce oil demand. A significant focus is on road transport, which accounts for roughly 45% of global oil consumption. However, the recommendations extend to aviation, cooking, and industrial processes. The core suggestions include encouraging remote work where feasible, lowering highway speed limits by at least 10 km/h, and promoting public transportation. More drastic measures, such as limiting car access to roads in large cities through odd-even plate schemes, are also on the table.

Beyond transportation, the IEA suggests optimizing commercial vehicle efficiency through load management and maintenance, diverting LPG from transport to prioritize essential uses like cooking, and encouraging the utilize of electric cooking appliances. For industrial facilities, the agency recommends exploring alternative petrochemical feedstocks to free up LPG supplies. Avoiding air travel whenever possible is also included in the recommendations.

Impact on Australia and Fuel Security

Australia is among the IEA member countries being urged to implement these measures. The situation is particularly sensitive for Australia, with concerns mounting over potential disruptions to crude oil imports from key Asian suppliers. Reports indicate some petrol stations are already experiencing low stock levels, and the government has been investigating potential price gouging by fuel retailers. The Australian government has already taken steps to relax fuel standards in an attempt to bolster supply, and is monitoring the situation closely.

The Broader Economic Context

The current crisis is unfolding against a backdrop of geopolitical instability and growing anxieties about the long-term security of energy supplies. The IEA’s executive director, Fatih Birol, has warned that without a rapid resolution to the conflict in the Middle East, the impacts on energy markets and economies will turn into increasingly severe. The agency emphasizes that demand restraint is a crucial component of any effective emergency response plan, as outlined in contingency measures required of all IEA member countries.

The disruption is also impacting global product markets, with export flows through the Strait of Hormuz nearing a standstill. Gulf producers exported 3.3 million barrels per day of refined products and 1.5 million barrels per day of LPG in 2025, much of which is now unavailable. More than 3 million barrels per day of refining capacity in the region has been shut down due to attacks and logistical challenges. The IEA’s March 2026 Oil Market Report projects a global oil supply plunge of 8 million barrels per day in March, partially offset by increased output from non-OPEC+ producers like Kazakhstan and Russia.

Regulatory Responses and Market Behavior

Governments worldwide are responding to the crisis with a mix of supply-side and demand-side measures. Austria and Greece, for example, are capping profit margins at fuel retailers, while the UK is providing financial assistance to vulnerable households to help cover heating oil costs. Several countries have also restricted travel for public officials and launched campaigns to encourage energy conservation. Australia’s initial response has focused on supply-side measures, including relaxing fuel standards and investigating potential anti-competitive practices.

What’s Next: A Waiting Game and Contingency Planning

The immediate future hinges on the resolution of the conflict in the Middle East and the restoration of safe passage through the Strait of Hormuz. However, even with a swift resolution, the IEA cautions that it will take time for markets to fully recover. The agency is prepared to consider further releases from emergency oil reserves if necessary. For now, governments are focused on implementing demand-side measures and preparing for a potentially prolonged period of energy market instability. State governments in Australia, while hesitant to discuss fuel rationing, are likely to be under increasing pressure to develop comprehensive contingency plans as the crisis unfolds. The situation will be closely monitored for further escalation, particularly given recent targeting of energy infrastructure in the Gulf region, raising the risk of sustained supply disruptions.