Global Energy Crisis Intensifies as Nations Roll Out Sweeping Conservation Measures
In response to a severe global energy crisis triggered by escalating conflict in West Asia, countries across Asia, Africa, and Europe have implemented unprecedented energy conservation measures. These actions aim to manage dwindling fuel supplies and stabilize volatile energy markets, with governments enforcing a mix of fuel rationing, work-from-home mandates, public holidays, transport restrictions, and partial industrial shutdowns.
Asia Takes Aggressive Steps to Mitigate Fuel Shortages
In Asia, Sri Lanka has tightened its fuel management by expanding its QR code-based National Fuel Pass system. The government declared public holidays for schools, universities, and non-essential state workers to reduce consumption. Under the updated programme, car owners now receive 25 litres per week, an increase of 10 litres, while three-wheelers get 20 litres, up by 5 litres. Fuel quotas for lorries and special-purpose vehicles remain unchanged.
Bangladesh has also moved aggressively, shutting universities and coaching centres, enforcing fuel rationing, and implementing five-hour rolling blackouts for households. The country prioritizes electricity supply to its crucial garment export sector, with the army deployed at oil depots to manage the situation. Neighbouring Pakistan introduced a four-day work week, mandated 50 per cent work-from-home for government employees, and slashed fuel allocations to departments, alongside closing educational institutions. Bhutan activated emergency protocols, including fuel rationing for essential services and restrictions to prevent hoarding.
Root Cause: West Asia Conflict Disrupts Critical Energy Routes
The crisis stems from an escalating conflict that began on February 28 with the killing of Iran's Supreme Leader, Ayatollah Ali Khamenei, in joint military strikes by the US and Israel. In retaliation, Iran targeted Israel and US assets in several Gulf countries, causing significant disruption in waterways and affecting international energy markets. Iran has virtually closed the Strait of Hormuz, a critical global transit route that normally handles 15 million barrels per day of crude oil and 5 million barrels per day of oil products, representing roughly 25 per cent of global seaborne oil trade. This closure has choked global energy supply, forcing countries worldwide to take drastic measures.
Southeast Asia and Africa Implement Stringent Controls
In Southeast Asia, countries like the Philippines and Vietnam are encouraging remote work and limiting non-essential travel. Myanmar imposed odd-even vehicle usage rules amid severe shortages that forced fuel stations to shut. Similar disruptions have been reported in Cambodia and Laos, where authorities promote electric mobility and rotational work shifts to ease pressure on strained supply chains.
In Africa, Egypt ordered early closure of malls, restaurants, and government offices while switching off illuminated billboards to cut power usage. Kenya imposed fuel rationing and halted exports as fears grow that existing stocks may run dry within weeks. South Africa introduced controlled fuel allocation measures to prevent panic buying and ensure equitable distribution.
Europe Faces Fuel Caps and Logistical Challenges
In Europe, Slovenia has seen fuel retailers impose strict caps on sales, limiting supplies for both private and commercial vehicles amid surging demand. Slovenian energy firm Petrol announced temporary restrictions on fuel purchases and called for the government to overhaul the state-controlled fuel pricing system, citing increased logistical challenges caused by the conflict.
Mounting Concerns Over Prolonged Disruption
The wave of restrictions reflects mounting concerns over prolonged disruption to energy flows, particularly through critical transit routes in West Asia. As the conflict continues, nations are bracing for further impacts on global economic stability, with energy conservation becoming a top priority to stretch limited reserves and prioritize essential services.
