The ongoing Iran war has triggered a sharp disruption in global energy markets, with the blockade in the Strait of Hormuz sending shockwaves far beyond the region.
Countries across Asia and as far as Argentina, Mexico and Canada have begun introducing measures to manage supply pressures and shield consumers from rising fuel costs.
“The conflict in the Middle East has triggered an unprecedented disruption to global fuel markets, tightening supply and placing significant pressure on consumers and economies worldwide,” the International Energy Agency said.
According to an International Energy Agency tracker, at least 70 countries, including Mexico, Canada, Australia, Japan, China and India, have adopted policy measures in response to the unfolding crisis.
Energy-Saving Measures
Governments have rolled out a mix of consumer-focused and administrative steps to curb demand and stabilise supply.
Consumer-focused measures include encouraging work from home, setting temperature limits for air conditioners, shifting to online classes, promoting public transport and, in some cases, mandating reduced vehicle use and lower speed limits.
Government-led actions include restricting official travel, capping fuel prices, increasing subsidies, and lowering energy taxes.
In India, authorities have cut excise duty on petrol and diesel, capped fuel retailer margins and imposed taxes on fuel exports. The Centre has also limited industrial use of natural gas, accelerated the rollout of piped natural gas to replace LPG, and rationalised commercial LPG consumption.
Global Coordination
Alongside national measures, coordinated efforts have also been initiated. Member countries of the International Energy Agency have agreed to release 400 million barrels of oil from emergency reserves, marking the largest such action in the agency’s history.
Meanwhile, diplomatic efforts continue. Weeks after an initial round of talks failed in Pakistan, Iranian and US envoys have arrived in Islamabad for a second round of negotiations, even as a fragile ceasefire holds in parts of the Middle East.