Work from home, avoid air travel to deal with higher energy prices, IEA says

New Delhi: The International Energy Agency (IEA) has outlined a set of immediate demand-side measures including working from home, reducing highway speeds and limiting air travel to help ease oil price pressures on consumers amid severe supply disruptions triggered by the ongoing conflict in the Middle East.

In a report released on Friday, the agency said coordinated action by governments, businesses and households could help mitigate the economic impact of surging energy prices, particularly as global markets grapple with one of the largest oil supply shocks in history.



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Record disruption tightens global oil markets

The IEA said the conflict has significantly curtailed flows through the Strait of Hormuz, a critical chokepoint that typically carries around 20% of global oil consumption, or roughly 20 million barrels per day of crude and refined products.

With shipments reduced sharply, crude prices have risen above $100 per barrel, while refined fuels such as diesel, jet fuel and liquefied petroleum gas (LPG) have seen even steeper increases, intensifying inflationary pressures worldwide.

The agency reiterated that restoring transit through the Strait remains essential to stabilising markets, but warned that supply-side interventions alone may not be sufficient.

Demand-side action critical alongside supply measures

Earlier this month, IEA member countries agreed to release a record 400 million barrels of oil from emergency reserves the largest such coordinated stock draw in the agency’s history.

However, the IEA said addressing demand is an equally critical and immediate tool to reduce pressure on consumers and improve energy security.

“The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market,” IEA Executive Director Fatih Birol said.

“In addition to supply measures, today’s report provides a menu of immediate and concrete actions that can be taken on the demand side by governments, businesses and households to shelter consumers from the impacts of this crisis,” he added.

Transport-focused measures offer quickest gains

The report identifies ten actions that can be implemented quickly, with a primary focus on road transport, which accounts for around 45% of global oil demand.


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Key measures include encouraging remote work to reduce commuting fuel use, lowering highway speed limits by at least 10 km per hour, and promoting a shift from private vehicles to public transport systems.

The IEA also suggested measures such as alternating private car usage in major cities through number-plate restrictions, increasing carpooling, and improving driving efficiency and freight logistics to cut diesel consumption.

Steps to ease pressure on jet fuel and LPG

Beyond road transport, the agency highlighted targeted actions to reduce strain on specific fuels.

It recommended avoiding air travel where alternative options exist to curb demand for jet fuel, and diverting LPG use away from transport towards essential needs such as cooking.

Encouraging the adoption of alternative clean cooking solutions, including electric options, could further reduce reliance on LPG and help avoid a return to more polluting fuels.

The IEA said industry can contribute by switching from LPG to alternative feedstocks such as naphtha where feasible, and by implementing short-term efficiency and maintenance measures to reduce oil consumption.

Governments, meanwhile, were urged to lead through regulatory action, public sector initiatives and targeted incentives, while ensuring that consumer support measures are well-directed and fiscally sustainable.

The agency noted that while demand-side actions cannot fully offset the scale of disrupted supply, widespread adoption could play a meaningful role in lowering costs, reducing market strain and preserving fuels for essential uses until normal supply conditions resume.




With inputs from Reuters