Fuel Rations and Free Buses: How Countries Are Responding to Rising Oil Prices
The ongoing conflict in Iran and the effective blockade of the Strait of Hormuz—through which approximately 20% of the world’s oil and natural gas flows—have caused fuel prices to soar sharply over the past month. With expectations of prolonged disruption due to this situation, governments worldwide are implementing measures to mitigate the effects on consumers and the economy. Here’s a roundup of the responses so far:
UK
– Petrol prices have hit an 18-month high, as reported by the RAC, alongside the rising global oil prices.
– The UK government is prepared to intervene if there are signs of price gouging among petrol sellers, despite denials from the Petrol Retailers Association.
– Low-income households using heating oil can access a £53 million assistance package announced by the Prime Minister in March.
China
– As the world’s largest oil buyer, China has been proactive in anticipating a supply shock by stockpiling oil.
– Estimated at 900 million barrels, this reserve is sufficient for about three months of imports.
– To keep domestic prices stable, Chinese authorities have ordered oil refineries to temporarily halt fuel exports.
India
– On March 26, India’s oil ministry announced securing crude oil supplies for the next 60 days and urged residents against panic buying.
– Approximately half of India’s crude imports typically pass through the Strait of Hormuz, but the ministry reassured that ample crude oil in international markets compensates for any disruption.
Ireland
– The Irish government has cut taxes on petrol and diesel as part of a €235 million package to alleviate energy costs.
– The suspension of the National Oil Reserves Agency (NORA) levy is expected to lower home-heating oil prices.
– Other measures include a VAT-inclusive excise cut on green diesel and extended heating payments for social welfare recipients.
Australia
– Public transport in Victoria will be free from Tuesday through April, while Tasmania will follow suit until the end of June, including school buses.
– The national average petrol price rose sharply, reaching A$2.38 per litre on March 22, up from A$2.09 at the war’s outset.
Egypt
– Heavily reliant on imported oil, Egypt has enacted several temporary measures to reduce fuel consumption.
– Establishments must close by 21:00 each night for a month, and non-essential workers are encouraged to work from home one day a week.
– The government has raised petrol prices and public transport fares while slowing down major energy-intensive projects.
Philippines
– A national emergency has been declared, with the government offering subsidies to transport drivers and implementing a reduced work week for civil servants.
– With 98% of its oil imports sourced from the Gulf, diesel and petrol prices have more than doubled.
Sri Lanka
– To conserve fuel, Sri Lanka has declared Wednesdays public holidays for government institutions.
– Fuel rationing limits drivers to 15 litres per week and motorcyclists to 5 litres.
Thailand
– The Thai government has encouraged citizens to reduce air conditioning usage by maintaining a temperature of 26-27°C and has mandated remote work for government agencies.
Ethiopia
– Authorities have prioritized fuel distribution for essential services and projects, while petrol stations are instructed to focus on public transport needs.
Myanmar
– Restrictions on private vehicle usage allow operation only on alternate days based on license plate numbers, with electric vehicles exempted.
– A digital fuel rationing system has been introduced for better monitoring.
Vietnam
– Citizens are encouraged to stay home to conserve fuel, with a focus on biking, carpooling, and public transport. Environmental taxes on fuel have been temporarily lifted.
Bangladesh
– The government has preemptively closed universities and imposed fuel rationing, alongside more planned blackouts.
Slovenia
– As the first EU member to implement fuel rationing, Slovenia limits private motorists to a maximum of 50 litres of fuel per day, while businesses can purchase up to 200 litres.
South Sudan
– In response to energy shortages, South Sudan is rationing electricity in Juba, with daily power cuts being implemented in some areas.
Governments globally are proactively crafting solutions to the challenges posed by rising oil prices, from creating incentives for public transport to instituting fuel rationing. As these measures unfold, their effectiveness in sustaining economic stability remains to be seen.