How countries are responding to the global energy crisis: "Everyone is on their own"

Energy prices are rising, and the Strait of Hormuz remains closed. Some countries are introducing measures to reduce consumption – from a four-day workweek and gasoline rationing to reduced use of air conditioning and working from home.

With 20 percent of the world's oil unable to pass through the Strait of Hormuz, crude prices are reaching $100 (€86) per barrel, and 400 million barrels of oil reserves have already been released to the market. Countries around the world are trying to find ways to reduce energy demand.

The International Energy Agency (IEA) has called this “the biggest supply disruption in the history of the global oil market” and has outlined several ways countries can consume less. But because each country has its own energy and transportation infrastructure and challenges, those that have already responded are doing so in many different ways. Others have yet to act.

The IEA states that road transport accounts for around 45 percent of global oil demand, so it is no surprise that many countries have turned to reducing consumption in this area.

Fuel rationing as a popular choice

In Sri Lanka, private drivers can only get 15 liters of gasoline per week through a QR code-based system.

A third of gas stations have closed in Cambodia, and Myanmar has introduced an "odd-even" rationing system based on vehicle registration numbers. This means that vehicles with odd numbers can buy fuel one day and even numbers the next.

In New Zealand, the government is considering reintroducing a “car-free day.” Drivers would choose a day of the week when they would not be allowed to drive.

China is taking a slightly different approach, abandoning a planned fuel price hike after prices at the pump rose 20 percent since the start of the war.

Slovenia earlier this week became the first EU member state to introduce fuel rationing, with private drivers limited to 50 liters per week, while businesses and farmers are subject to a 200-liter limit. While Slovakia has introduced measures against diesel hoarding, Slovenia remains an outlier in Europe.

EU and Germany slow to respond to crisis

The International Road Transport Union (IRU) has called on the European Union to react quickly.

"If diesel supplies are disrupted, the consequences will be felt immediately across EU logistics networks, slowing down supply chains and affecting the delivery of goods to businesses, shops and households," said IRU Secretary General, Umberto de Preto.

"Coordinated EU action is key to stabilising fuel markets, as well as avoiding individual national responses and ensuring that logistics chains continue to function."

With the EU hesitant to find a unified position, each country has to make its own decisions. With petrol and diesel prices at or above 2 euros per litre, up 18 percent in two weeks, Germany is under pressure.

A bill has been proposed that would allow gas stations to increase prices only once a day, but it has been shelved because it would require changes to competition laws. Economy Minister Katerina Rajhe said requests for fuel price caps, rebates or a tax on extra profits were being considered, but that the costs and benefits had to be weighed.

Despite the crisis, Berlin has completely ruled out a return to Russian gas, which the country relied on before the invasion of Ukraine.

Working from home as a fuel saver

In addition to fuel rationing, encouraging people to work from home more often is a common strategy. Pakistan has introduced a four-day workweek for civil servants, and the Dominican Republic is also encouraging businesses to reduce the time employees spend in the workplace.

In Africa, Egypt is trying to reduce energy consumption by mandating that shopping malls and restaurants must close by 21 p.m. at the latest, and all government institutions by 18 p.m. Similarly, Bangladesh and Thailand have set maximum temperatures in government buildings at 25 and 26 degrees Celsius, respectively, to save on air conditioning costs.

Kenya has responded by banning exports and imposing strict fuel rationing. Zambia has threatened fines for anyone hoarding gasoline, with Africa, like Asia, heavily dependent on Middle Eastern oil.

“Everyone is on their own,” Anibor Kraga, executive secretary of the African Association of Refiners and Distributors trade association, told the Financial Times. “Even exporters are wondering how to meet domestic demand first. It’s not just about refining – it’s also about storage, distribution infrastructure, pipelines and ports. When you look at it as a whole, you can see how vulnerable Africa is.”

Stop flying, start using public transportation

The IEA also urged people to avoid air travel, with US airline United Airlines already warning that it could increase ticket prices by 20 percent.

Another recommendation is to use public transport as much as possible. This is naturally easier in some countries than others, and incentives like Germany's 2025 policy of a widely available nine-euro transport ticket could be introduced in various places.

The use of liquefied petroleum gas (LPG) is also in the spotlight. The IEA has advised that LPG (a mixture of propane and butane) should be redirected from transportation to essential domestic functions, especially cooking.

This is significant for India, the second-largest importer and third-largest user of LPG. Imports into India were halved in March, and restaurants, hotels and cafes are struggling to adapt. Some businesses have reduced both hours and service levels, while government officials say supplies will be prioritized for the 300 million households that use LPG for cooking.