Sheltering fromOil Shocks Measures to reduce impacts onhouseholds and businesses INTERNATIONAL ENERGYAGENCY The IEA examines the fullspectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement and muchmore. Through its work,the IEA advocatespolicies that will enhancethe reliability,affordability andsustainability of energyin its32Member countries,13Association countriesand beyond. IEAAssociationcountries: IEAMembercountries: ArgentinaChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraineViet Nam AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLatviaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States This publication and any mapincluded herein are withoutprejudice to the status of orsovereignty over any territory,to the delimitation ofinternational frontiers andboundaries and to the nameof any territory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Summary The conflict in the Middle East has created the largest supply disruption inthe history of the global oil market, due to the near halt in shipping traffic throughthe Strait of Hormuz. Some 15 million barrels of crude oil and 5 million barrels of oilproducts typically traversed the Strait each day, equivalent to around 20% of globaloil consumption. These flows have slowed to a trickle. The loss of supply is havingsignificantimpacts in global markets,pushing up prices for crude oil above$100/barrel, and leading to much higher prices for some refined products – notablydiesel, jet fuel and liquefied petroleum gas (LPG). Concerns are growing about theimpacts of higher prices on households, businesses and the broader economy. The resumption of transit through the Strait of Hormuz is the single mostimportant action to return to stable oil and gas flowsand reduce the strains onmarkets and prices. In the interim, countries around the world are taking a range ofmeasures to increase supply and to reduce the impact of sharp price rises onconsumers. On the supply side, IEA member countries took a crucial step on 11March by making 400 million barrels of oil from their emergency reserves availableto the market, the largest stock release in IEA history. But the demand side is alsoa crucial part of the energy security equation. In this report, the IEA details 10 demand-side options open to households,businesses and governments to shelter themselves from today’s oil shockandrelieve the strains on affordability.These are based on the IEA’slongstanding expertise on energy security and on specific country examples.Governments can take the lead, both by setting an example and by facilitating theseactions, but many can be adopted by individuals and businesses directly. Most ofthese options relate to consumption of road transport fuels, but they also cover fueluse for air transport, cooking and industry. For road transport, the key options are to: •Work from home where possible:Working from home can significantly reduceoil consumption from commuting. At the national level, three additional remoteworkdays, for those whose jobs allow for it, could cut oil consumption from carsby 2%-6%, with average potential reductions of around 20% for individualdrivers.•Reduce speed limits on highways by at least 10 km/h: Lowering the speedlimit on highways by 10 km/h can reduce an individual driver’s oil consumptionby 5% to 10% and overall oil use for private cars by 1% to 6%. Heavy freighttrucks can save around 5% due to their already lower speeds.•Encourage public transport: Shifting travel away from private cars to publictransport, such as buses and trains, can reduce national oil use for cars by 1%to 3%. Options like cycling and walking for shorter journeys can lead to furtherreductions. •Alternate private car access to roads in large cities on different days:Limiting cars’ access in designated zones to specific days based on their numberplate could reduce traffic congestion, engine idling and fuel-intensive stop-and-go driving, with savings of 1% to 5% of national car oil use.•Increase car sharing and adopt efficient driving practices:Carpoolingincreases car occupancy and relieves road congestion, reducing travel times andcar usage. When combined with eco-driving measures, including checking tyrepressure, adjusting air conditioning settings, and efficient driving practices, fueldemand for cars can be reduced by around 5% to 8%.•Efficient driving for road commercial vehicles and delivery of goods: Eco-driving practices, including regular checks of tyre pressure, reduced idling, andreduction of braking and accelerating, combined with operational improvements,suchas optimisation of vehicle