New Delhi

The International Energy Agency (IEA) has proposed a range of immediate measures such as increased work-from-home, reduced air travel, and lower driving speeds to help mitigate the impact of a major global oil supply disruption caused by tensions in the Middle East.

Global oil prices surged past USD 100 per barrel following military actions involving the US, Israel, and Iran, along with retaliatory strikes by Tehran. For India, which depends on imports for nearly 88 per cent of its crude oil requirements, the spike poses serious economic challenges, including pressure on the rupee, rising fuel costs, and a widening current account deficit.

While petrol and diesel prices have remained unchanged so far, cooking gas prices have increased by Rs 60 per cylinder, adding to household expenses.

In its report, the IEA described the situation as the most severe supply disruption in the history of global oil markets, largely due to a sharp decline in shipments through the Strait of Hormuz — a crucial route that typically handles about 20 per cent of the world’s oil supply. A significant portion of India’s crude oil, gas, and LPG imports passes through this route, making the country particularly vulnerable.

To ease demand and stabilise prices, the agency outlined 10 key actions. These include encouraging remote work to reduce commuting fuel use, lowering speed limits on highways by at least 10 km per hour, promoting carpooling and public transport, and restricting private vehicle use in urban areas.

Additional recommendations involve cutting down business-related air travel, improving fuel efficiency in industries, and reducing non-essential LPG consumption.

The IEA noted that increasing remote work by just three additional days per week could reduce oil consumption from cars by 2–6 per cent at the national level, with even higher savings for individual commuters. Similarly, reducing highway speeds could cut fuel use by 5–10 per cent per driver.

The report also highlighted that shifting from private vehicles to public transport could lower overall oil demand by up to 3 per cent, while significantly reducing business flights could bring down jet fuel consumption by 7–15 per cent.

The agency stressed that restoring normal shipping operations through the Strait of Hormuz is critical for stabilising global markets. In the meantime, member nations have already released around 400 million barrels of oil from emergency reserves — the largest such coordinated effort to date.

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While governments may offer targeted support to vulnerable sections, the IEA underlined that reducing fuel demand will be essential in managing the ongoing crisis effectively.