The International Energy Agency (IEA) has outlined a series of demand-side measures aimed at easing pressure on consumers following major disruptions to oil markets caused by conflict in the Middle East. Chief among these is a renewed push for remote working, seen as one of the quickest ways to reduce fuel demand.

The crisis has triggered one of the most significant supply disruptions in modern oil market history. Shipping through the Strait of Hormuz, a vital artery that typically carries around 20% of global oil consumption, has slowed dramatically.

Roughly 20 million barrels per day of crude oil and refined products usually pass through this route, and the reduction has tightened supply, pushing crude prices above $100 per barrel. Refined fuels such as diesel, jet fuel and liquefied petroleum gas (LPG) have seen even sharper increases.

While restoring flows through the Strait remains critical, governments have already begun responding. On 11 March, IEA member countries agreed to release 400 million barrels from emergency reserves, marking the largest coordinated stock draw in the agency’s history.

However, supply-side interventions alone are unlikely to fully offset the disruption. Reducing demand is now viewed as an immediate and practical tool to lower costs, improve affordability and strengthen energy security.

The IEA’s latest report identifies ten actions that can be implemented quickly by governments, businesses and households. These measures focus largely on road transport, which accounts for approximately 45% of global oil demand, but also extend to aviation, cooking and industry. If widely adopted, they could significantly soften the impact of the crisis.

Road transport presents the greatest opportunity for immediate savings. Behavioural shifts and targeted policies, many of which have been used in previous crises, can deliver rapid results. At the same time, measures in aviation, household energy use and industrial processes can help protect critical fuel supplies and limit further price escalation.

Governments are expected to play a leading role through regulation, incentives and public sector initiatives, while ensuring that financial support is targeted and sustainable. Experience from past crises suggests that well-directed assistance is more effective than broad subsidies.

Although these demand-side measures cannot fully compensate for lost supply, they can meaningfully reduce pressure on markets and help preserve fuel for essential uses until stability returns.

Ten immediate actions to reduce fuel demand:

• Work from home where possible
  Reduces fuel use from daily commuting, particularly in roles suited to remote work.
• Lower highway speed limits by at least 10 km/h
  Improves fuel efficiency across passenger and freight transport.
• Encourage greater use of public transport
  Shifting from private cars to buses and trains cuts overall oil demand.
• Introduce alternating vehicle access in major cities
  Number plate-based restrictions can reduce congestion and fuel consumption.
• Promote car sharing and efficient driving
  Higher occupancy and eco-driving techniques lower fuel use.
• Improve efficiency in freight and delivery operations
  Better route planning, vehicle maintenance and load optimisation reduce diesel consumption.
• Divert LPG use away from transport
  Encourages switching LPG-powered vehicles back to petrol to prioritise essential uses like cooking.
• Reduce air travel where alternatives exist
  Cutting business flights can quickly ease demand for jet fuel.
• Adopt alternative cooking solutions where feasible
  Electric and other modern methods reduce reliance on LPG and limit health risks from polluting fuels.
• Enhance industrial flexibility and efficiency
  Switching feedstocks and improving maintenance can lower oil use and free up LPG for critical needs.

As countries continue to respond, the success of these measures will depend largely on public cooperation and the speed at which they can be implemented.

(Image: AI generated)