On Monday, crude oil prices surged beyond $110 per barrel, a level not reached since 2022, causing global repercussions due to the US-Iran conflict and its detrimental effects on the worldwide energy supply. Governments worldwide took action to address the crisis as public anxiety grew over increasing petrol, diesel, and energy costs.
Gasoline, diesel, and aviation fuel are derived from crude oil. When the price of crude oil goes up, the expense of these widely used fuels also rises. These fuels are essential for operating machinery, automobiles, buses, delivery vehicles, and airplanes.
Numerous nations have intensified their initiatives to prevent fuel shortages. Reports indicate that the potential closure of the Strait of Hormuz has led Saudi Arabia, the leading oil exporter globally, to reduce its production. The United Arab Emirates, Kuwait, and Iraq have implemented similar measures.
Here is a detailed analysis of the measures being implemented by each country:
The Indian Republic
India has instructed refineries to boost the production of LPG for domestic use. On Monday, the Ministry of Petroleum and Natural Gas (MoPNG) announced that oil refineries have been ordered to increase their output.
Due to recent geopolitical disturbances affecting fuel supply and limitations on LPG availability, the Ministry has directed oil refineries to increase LPG production and allocate the additional output for domestic use, according to a statement released on X.
MoPNG announced that a panel consisting of three executive directors from oil marketing companies (OMCs) has been established to assess the LPG supply for restaurants, hotels, and other non-domestic sectors.
VIETNAM
Vietnam's trade ministry has encouraged companies to permit employees to work remotely in order to reduce fuel consumption due to supply issues and increasing prices associated with the conflict in Iran.
In a statement released on Tuesday, the government indicated that Vietnam is one of the nations most impacted by fuel shortages following the onset of the US-Israeli conflict with Iran.
SOUTH KOREA
South Korea, which is significantly dependent on trade and imported energy, has expressed worry about Iran's assaults on energy facilities and attempts to close the Strait of Hormuz, a passageway that handles approximately 20% of the global oil trade.
On Monday, President Lee Jae Myung announced that the government will impose a limit on domestic fuel prices for the first time in nearly three decades to control rising costs. He also mentioned that South Korea will look for energy sources that bypass the Strait of Hormuz.
PAKISTAN
Pakistan has implemented measures to conserve fuel following a surge in oil prices beyond $100 and interruptions in gas supplies from the Middle East, which have caused panic buying in the import-reliant South Asian nation.
On Monday, Prime Minister Shehbaz Sharif introduced over a dozen cost-cutting strategies to address the worldwide fuel crisis triggered by the conflict.
This involves reducing the workforce by 50% and transitioning to a four-day workweek. Over the next two months, government expenditure will decrease by 20%, and fuel usage for government vehicles will be halved.
The measures were revealed following the government's decision to raise fuel prices by 55 rupees (20 cents) on Saturday, marking the highest increase ever noted in the nation.
CHINA
In the initial two months of the year, China boosted its crude oil acquisitions as it continued to stockpile reserves in anticipation of potential supply interruptions.
The surplus oil is being kept in commercial and strategic reserves, which could be utilized if the US-Israeli conflict with Iran persists for an extended duration.
Beijing also asked refiners to stop signing new fuel export contracts and try to cancel shipments already agreed, news agency Reuters reported, citing people with knowledge of the matter.
JAPAN
A senior member of parliament stated on Sunday that the Japanese government has instructed a national oil reserve facility to prepare for a potential release of crude oil.
Akira Nagatsuma, who is part of the Centrist Reform Alliance opposition party, informed Reuters that a representative from the Japan Organization for Metals and Energy Security (JOGMEC) at the Shibushi national oil storage facility mentioned that the directive was issued on Friday by the Agency for Natural Resources and Energy (ANRE).
EGYPT
The petroleum ministry announced on Tuesday that Egypt has raised the prices of various fuel products, as nations in the region grapple with escalating global oil and gas prices.
"The ministry stated that this arises due to the extraordinary circumstances stemming from geopolitical changes in the Middle East and their immediate impact on global energy markets.
The cost of diesel, a commonly utilized fuel in the nation, increased by 3 Egyptian pounds, reaching 20.50 Egyptian pounds ($0.3887) from the previous 17.50 pounds.
BANGLADESH
The energy ministry of Bangladesh announced that inspections were conducted on Sunday to assess fuel stock levels.
On Sunday, officials in Dhaka implemented fuel rationing, restricting the amount of fuel that specific vehicles can purchase, due to panic buying and stockpiling following alerts about potential supply interruptions. Starting Monday, the government also closed all universities and moved up the Eid al-Fitr holidays as part of urgent actions to save electricity and fuel in response to the escalating energy crisis associated with the conflict.