The International Energy Agency (IEA) released an advisory on Friday, urging people to take some steps, such as working from home and avoiding air travel. These measures are outlined to ease oil price pressures on consumers.
The US-Israel war with Iran has led to a spike in energy prices, causing concerns over inflation across the world. The advisory comes shortly after the IEA agreed to a record release of oil from strategic stockpiles to deal with the effects of the US-Israeli war with Iran.
Last week, the IEA also shared an update regarding the release of emergency oil, saying that it will soon start flowing to global markets to address supply disruptions, according to multiple reports.
The world's energy watchdog said its proposals were actions that governments, businesses and households could take to alleviate the economic impact of disruptions to oil markets.
The conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20% of global oil consumption, reduced to a trickle, the agency said in the advisory.
Oil prices surge amid Middle East tensions Oil prices spiked to over $100 per barrel after the US and Israel attacked Iran and Tehran's sweeping retaliatory actions on US bases in the Middle East countries.
For India, which imports about 88% of its crude oil needs, the surge in global prices poses a major macroeconomic risk, as it may widen the current account deficit, put pressure on the rupee, and increase fuel costs for households and businesses.
Also Read | How Yuan Payments For Oil Passage Through Strait of Hormuz Can Harm US Dollar |
While petrol and diesel prices in major metro cities of the country have remained steady over the weeks, Liquefied Petroleum Gas (LPG) rates have been hiked by ₹60 per cylinder.
Advised actions to reduce fuel usage: 1. Work from home: The IEA has urged people to work remotely when possible, as it displaces oil use from commuting.
2. Reduce highway speed: It is also advisable to reduce speed limits on highways by at least 10 km/h as it helps to cut fuel usage for vehicles, such as passenger cars, vans and trucks.
3. Encourage public transport: Commuters are urged to shift from private cars to public transport such as buses and trains, if travelling is necessary.
4. Alternate private car access to roads: The energy regulator has called for number-plate rotation schemes in large cities on different days, as such a move can reduce congestion and fuel-intensive driving.
5. Increase car sharing: Higher car occupancy and eco-driving can lower fuel consumption quickly. It is also advised to adopt efficient driving practices:
6. Efficient driving by commercial vehicles: Better driving practices, vehicle maintenance and load optimisation for deliveries can cut diesel use.
7. Divert LPG use from transport: Shifting bi-fuel and converted vehicles from LPG to gasoline can preserve LPG for cooking and other essential needs.
8. Choose alternative options of air travel: Reducing business flights, when possible, can quickly ease pressure on jet fuel markets.
9. Switch to other cooking solutions: Encouraging electric cooking and other modern options can reduce reliance on LPG, wherever possible.
10. Leverage flexibility with petrochemical feedstocks: Industry can help free up LPG for essential uses while reducing oil consumption through quick operational improvements.