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 impacts on consumers from oil market disruptions stemming from the Middle East war.
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 tightened markets significantly, 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).
ALSO READ | Premium Petrol Gets Costlier: BPCL, HPCL, IOCL Hike Prices Amid US-Iran War
According to the report, restoring transit through the Strait remains essential to stabilise global energy markets. In the meantime, countries are acting 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.
ALSO READ | India Faces Rs 50,000 Crore Import Hit as Iran War Fuels Inflation Risks
"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 optimisation 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.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
