IEA Urges Fuel Savings: Work From Home, Slower Speeds & Car Restrictions

IEA Calls for Demand Reduction as Middle East Conflict Threatens Oil Supply

The International Energy Agency (IEA) is urging governments to implement emergency measures to curb oil demand, including encouraging remote work, reducing highway speed limits, and even restricting car access in major cities. The recommendations, issued on March 20, 2026, come as escalating tensions in the Middle East – specifically following military strikes on Iran – trigger the most significant disruption to global oil markets in modern history.

The IEA’s advice, directed at member countries including Australia, the UK, and the US, aims to mitigate the impact of soaring oil prices and potential fuel shortages. The crisis stems from concerns over the security of the Strait of Hormuz, a vital trade passage accounting for roughly 20% of global oil production and transport – approximately 15 million barrels of crude oil and 5 million barrels of oil products daily. The situation is compounded by a lack of clear de-escalation pathways, despite ongoing political discussions regarding a potential naval escort mission, an idea previously floated by US President Donald Trump and French President Emmanuel Macron but recently dismissed by the International Maritime Organization due to safety concerns.

The agency’s recommendations are broad, encompassing ten measures focused primarily on reducing demand in the road transport sector. These include promoting carpooling, increasing car sharing, optimizing commercial vehicle loads, and encouraging efficient driving practices. Beyond transportation, the IEA suggests diverting Liquefied Petroleum Gas (LPG) from transport to prioritize essential uses like cooking, and encouraging the use of electric cooking appliances to lessen reliance on LPG. Air travel is also targeted, with a call to avoid non-essential flights.

The IEA’s response follows an unprecedented release of government oil reserves last week, intended to stabilize prices that have already surged above $100 a barrel. However, the agency acknowledges that market recovery will be protracted, and that demand restraint is a crucial component of any effective emergency response. “Demand restraint is one of the emergency response measures that all IEA member countries are required to have ready as a contingency,” the agency stated, “and that they can use to contribute to an IEA collective action in the event of an emergency like this current disruption.”

While the IEA’s recommendations are aimed at curbing demand, the situation is also prompting concern about supply-side vulnerabilities. Australia, for example, is focused on ensuring its crude oil imports from Asian suppliers aren’t disrupted as countries prioritize securing their own reserves. The Australian government has initially responded by relaxing fuel standards and investigating potential anti-competitive practices by fuel retailers, but state governments have been hesitant to discuss more drastic measures like fuel rationing.

The current disruption is particularly concerning given the absence of a clear exit strategy for the US in the ongoing conflict. The targeting of energy infrastructure has heightened fears of a prolonged cut to oil supplies, and IEA Executive Director Fatih Birol warned that, without a swift resolution, “the impacts on energy markets and economies are set to become more and more severe.” The IEA’s recommendations, Birol added, provide a “menu of immediate and concrete measures that can be taken on the demand side by governments, businesses and households to shelter consumers from the impacts of this crisis.”

Other nations are already taking steps to mitigate the impact. Austria and Greece are capping profit margins at fuel retailers, while the UK is providing financial assistance to vulnerable households to help cover heating oil costs. Several countries have also restricted travel for public officials and launched campaigns to encourage energy conservation.

The situation remains fluid, and observers will be closely watching for any signs of de-escalation in the Middle East. However, the IEA’s recommendations signal a growing recognition that managing the fallout from the current crisis will require a concerted effort to reduce oil demand, alongside efforts to secure supply.