WFH to modern cooking, IEA lists immediate actions to mitigate energy crisis

New Delhi: As the West Asia crisis escalates, the International Energy Agency (IEA) on Friday set out a range of demand-side actions — including work from home and avoiding air travel — for governments, businesses and households to alleviate the economic impacts on consumers.

Among the immediate actions to reduce demand is work from home where possible — displacing oil use from commuting, particularly where jobs are suitable for remote work.

Where possible, switch to other modern cooking solutions. Encouraging electric cooking and other modern options can reduce reliance on LPG, said the report.

“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. In the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe,” said IEA Executive Director Fatih Birol.

The IEA report provides 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.

“It draws on the IEA’s decades of expertise in this field and highlights measures that have been proven to work in practice in different contexts. I believe it will be of use to governments around the world, in both advanced and developing economies, in these challenging times,” said Birol.

In road transport, a combination of behavioural and policy measures can deliver rapid savings.

“Working from home where possible reduces fuel demand for commuting, while lowering highway speed limits by at least 10 kilometres per hour cuts fuel use across both passenger vehicles and freight,” the report highlighted.

Encouraging a shift from private cars to public transport, alongside measures such as alternating private vehicle access in large cities, can further reduce congestion and fuel consumption.

Additional gains can be achieved through car sharing and more efficient driving practices, as well as improved efficiency in freight and delivery operations, it added.

Beyond road transport, targeted actions can ease pressure on fuels that are particularly constrained.

“A reduction in air travel where alternatives exist can significantly lower demand for jet fuel. Measures to shift LPG use away from transport and towards essential applications, such as cooking, can help protect vulnerable households,” the IEA report said.

At the same time, encouraging the uptake of alternative clean cooking solutions where feasible can reduce reliance on LPG and avoid a return to more polluting fuels that harm people’s health.

Industry also has an important role to play. In countries where LPG supplies are under pressure, facilities may be able to switch from LPG to alternative feedstocks such as naphtha.

“This can free up LPG supply for urgent uses – and can be complemented by short-term efficiency and maintenance measures that can deliver additional reductions in oil consumption,” said the report.

Governments can lead by example through public sector measures, regulatory action and targeted incentives while ensuring that support for consumers is timed appropriately and focused on those most in need.

Experience from previous crises shows that well-targeted support mechanisms are more effective and fiscally sustainable than broad-based subsidies, said the report.

The conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20 per cent of global oil consumption, reduced to a trickle.

Around 20 million barrels per day of crude oil and oil products typically transit the Strait.

IANS