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IEA Urges Immediate Demand Cuts Amid Historic Global Fuel Shock

by Lanka Sara Editor
March 22, 2026
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The International Energy Agency (IEA) has called for urgent demand-side action by governments, businesses and households worldwide to ease the growing fuel crisis triggered by the ongoing war in the Middle East.

According to the IEA, the conflict has caused the largest supply disruption in the history of the global oil market, largely due to severe restrictions on shipping through the Strait of Hormuz. This critical route typically carries around 20% of global oil consumption, equivalent to nearly 20 million barrels per day, but flows have now dropped to minimal levels.

The disruption has sharply tightened global energy markets, pushing crude oil prices above $100 per barrel, while refined fuels such as diesel, jet fuel and liquefied petroleum gas (LPG) have seen even steeper price increases.

While restoring normal shipping through the Strait remains essential for long-term stability, the IEA emphasized that immediate action is needed to reduce demand. Earlier this month, IEA member countries agreed to release 400 million barrels of oil from emergency reserves, the largest coordinated stock release in the agency’s history. However, the agency warned that supply-side measures alone are not sufficient to offset the scale of the disruption.

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IEA Executive Director Fatih Birol said the crisis is likely to worsen without swift intervention. He stressed that practical and proven demand-reduction measures can play a crucial role in protecting consumers, improving affordability and strengthening energy security.

The agency’s latest report outlines  ten immediate actions that can significantly reduce oil consumption across key sectors such as road transport, aviation, cooking and industry.

Road transport—responsible for about 45% of global oil demand  offers the greatest potential for quick savings. The IEA recommends measures such as working from home, reducing highway speed limits by at least 10 km/h, and encouraging a shift from private vehicles to public transport. Additional steps include car-sharing, eco-driving practices, and improving efficiency in freight and delivery operations.

In urban areas, governments are encouraged to consider vehicle rationing schemes, such as allowing cars on roads on alternate days based on number plates, to cut congestion and fuel use.

Beyond transport, the report highlights ways to ease pressure on constrained fuels. Reducing non-essential air travel can help lower demand for jet fuel, while limiting LPG use in vehicles can preserve supplies for critical needs such as cooking  particularly for vulnerable households.

The IEA also encourages a shift toward cleaner cooking alternatives, including electric solutions, where feasible. This would help reduce dependence on LPG and prevent households from reverting to more polluting fuels.

Industry is also expected to contribute by switching from LPG to alternative feedstocks such as naphtha where possible, alongside implementing short-term efficiency and maintenance improvements to cut fuel consumption.

Governments, the agency noted, must lead these efforts through policy action, targeted incentives and public sector initiatives. It stressed that well-targeted support for vulnerable groups is more effective and financially sustainable than broad fuel subsidies.

Although these demand-side measures cannot fully replace lost supply, the IEA believes widespread adoption could significantly reduce pressure on global markets, lower costs for consumers and ensure that limited fuel supplies are directed toward essential uses until normal conditions return.

The agency also noted that many countries have already begun implementing similar conservation and financial measures since the onset of the crisis, reflecting a growing global effort to manage one of the most severe energy disruptions in history.

 

1. Work from home where possible

2. Reduce highway speed limits by at least 10 km/h

3. Encourage public transport

4. Alternate private car access to roads in large cities on different days

5. Increase car sharing and adopt efficient driving practices

6. Efficient driving for road commercial vehicles and delivery of goods

7. Divert LPG use from transport

8. Avoid air travel where alternative options exist

9. Where possible, switch to other modern cooking solutions

10. Leverage flexibility with petrochemical feedstocks and implement short-term efficiency and maintenance measures

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