Global Response to Rising Fuel Prices Amid Strait of Hormuz Disruption
The ongoing conflict in Iran and the effective closure of the Strait of Hormuz, a critical passage for approximately 20% of the world's oil and natural gas, have led to a significant increase in fuel prices over the past month.
Anticipating a prolonged effect on global fuel costs, governments worldwide have initiated various strategies to mitigate the impact on consumers and economic stability.
The following outlines the measures implemented to date.
United Kingdom
Although the majority of the UK's electricity is generated from natural gas and renewable sources, petrol prices have surged to an 18-month peak, attributed to rising global oil prices, according to the motoring organisation RAC.
The UK government has indicated readiness to intervene should evidence arise of petrol retailers exploiting the crisis for profit, a claim the Petrol Retailers Association has denied.
Additionally, low-income households reliant on heating oil will have access to a £53 million support package announced by the prime minister in March to assist with heating costs.
Australia
In response to escalating petrol prices, two Australian states have introduced free public transportation to discourage private vehicle use.
Victoria has made travel on trains, trams, and buses free from Tuesday through April, while Tasmania has waived fares for buses, coaches, and ferries from Monday until the end of June.
Tasmania's transport minister also announced that paid-for school buses will be free, saving users approximately A$20 (£10.40) weekly.
Since the Middle East conflict began, petrol prices in Australia have risen sharply, with the national average reaching A$2.38 per litre on 22 March, up from about A$2.09 at the conflict's onset, according to the Australian Institute of Petroleum.
Egypt
Egypt, heavily dependent on imported oil, has enacted several temporary measures aimed at reducing fuel consumption and managing public finances.
Retail establishments such as shops, restaurants, and cafes are required to close by 21:00 nightly for the next month, with exemptions for hotels and tourist attractions. Street lighting and roadside advertising have been dimmed to conserve energy.
Non-essential workers have been instructed to work from home one day per week to decrease commuting.
The government has increased petrol prices and public transport fares to alleviate financial strain caused by the conflict. Large, energy-intensive state projects have been slowed, and government vehicle fuel allowances have been reduced by nearly one-third.
Philippines
The Philippines has declared a national emergency in response to soaring fuel costs, implementing subsidies for transport drivers, reducing ferry services, and instituting a four-day workweek for civil servants.
With 98% of its oil imported from the Gulf, the country has experienced diesel and petrol prices more than doubling.
The government has committed to stockpiling an additional one million barrels of oil and has not ruled out further interventions.
"Nothing is off the table," President Ferdinand Marcos said. "We are looking at everything we can do."
Sri Lanka
Having recently emerged from a financial crisis, Sri Lanka, which depends heavily on Gulf states for fuel imports, has declared Wednesdays as public holidays for government institutions including schools and universities to conserve fuel.
Fuel rationing has been introduced, limiting drivers to 15 litres per week and motorcyclists to 5 litres.
Thailand
The Thai government has encouraged citizens to remove jackets indoors as part of energy-saving measures aimed at reducing air conditioning use.
Air conditioning temperatures have been set to 26-27°C, and all government agencies have been directed to work from home.
Given Thailand's typically hot and humid climate, with Bangkok reaching approximately 72% humidity in April, these measures are significant.
Fuel supply companies have been instructed to prioritize security institutions, major government projects, key industries, and essential goods manufacturing.
Ethiopia
The Ethiopian Oil and Energy Authority has implemented measures including prioritizing public transport at petrol stations and imposing restrictions to conserve fuel.
In the Tigray region, amid concerns of renewed civil conflict, authorities have announced a complete suspension of fuel supplies.
Myanmar
Myanmar has restricted private vehicle operation to alternate days based on the parity of license plate numbers, exempting electric vehicles.
The government has also introduced a digitally monitored fuel rationing system, where fuel purchases are scanned, logged, and tracked via QR codes on vehicles.
Vietnam
Vietnam has strongly encouraged citizens to remain at home more frequently to conserve fuel.
The government has urged the public to "ride bicycles, carpool, use public transport, and restrict personal vehicle use when unnecessary."
Additionally, Vietnam has temporarily suspended its environmental protection tax on petrol and diesel, which are also exempt from VAT.
Bangladesh
Bangladesh responded swiftly by closing universities at the onset of the war, advancing holidays to coincide with the end of Ramadan.
The government has begun rationing fuel sales for most vehicles and has increased planned blackouts to reduce energy consumption.
Slovenia
Slovenia has become the first European Union member state to implement fuel rationing.
Private motorists are limited to purchasing a maximum of 50 litres of fuel per day, while businesses and farmers have a higher allowance of 200 litres daily.
South Sudan
South Sudan has initiated electricity rationing in its capital, Juba, with the main electricity distributor, Jedco, announcing daily rotational power cuts in parts of the city.
Despite possessing some of East Africa's largest oil reserves, most crude oil is exported, and the country imports refined fuel products.
According to the International Energy Agency, South Sudan generates 96% of its electricity from oil.
