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Strait of Hormuz closure triggers worldwide fuel price surge
The ongoing conflict in Iran and the effective blockade of the Strait of Hormuz-through which approximately one-fifth of global oil and natural gas shipments transit-has sent fuel costs soaring over the past month. Governments across the globe are rolling out emergency measures to mitigate the economic fallout for consumers and industries.
United Kingdom: Price caps and heating aid
In the UK, where natural gas and renewables dominate electricity generation, petrol prices have climbed to an 18-month peak, according to the RAC motoring organization. Authorities have warned they will intervene if evidence emerges of price gouging by retailers, though the Petrol Retailers Association denies such practices. Meanwhile, low-income households relying on heating oil will receive a £53 million support package, announced by the prime minister in March.
China: Strategic reserves and export bans
China, the world's largest oil importer, has long prepared for Gulf supply disruptions by stockpiling crude. Estimates place its reserves at 900 million barrels-enough for roughly three months of imports-built during periods of lower prices and abundant supply from Gulf states. To stabilize domestic prices, Beijing has reportedly ordered refineries to halt fuel exports temporarily.
India: Tax cuts and supply assurances
India's oil ministry confirmed on March 26 that it has secured enough crude to cover the next 60 days and urged citizens to avoid panic buying. Nearly half of India's crude imports, along with significant volumes of liquefied natural and petroleum gas, typically pass through the Strait of Hormuz. The ministry noted that "high volumes" of crude available in international markets have offset the disruption. To ease costs, the government has slashed taxes on petrol and diesel, suspended the National Oil Reserves Agency (NORA) levy, and extended heating payments for social welfare recipients by four weeks under a €235 million (£203 million) relief package.
Australia: Free public transport and rising fuel costs
Two Australian states have made public transport free to discourage car use. Victoria will waive fares on trains, trams, and buses throughout April, while Tasmania has eliminated charges for buses, coaches, and ferries until the end of June. School bus services in Tasmania will also be free, saving families approximately A$20 (£10.40) weekly. Nationwide, petrol prices have surged to A$2.38 per litre as of March 22, up from A$2.09 at the start of the conflict, according to the Australian Institute of Petroleum.
Egypt: Energy conservation and price hikes
Egypt, heavily dependent on imported oil, has introduced sweeping measures to curb fuel consumption and protect public finances. Businesses, including shops, restaurants, and cafes, must close by 21:00 for the next month, while street lighting and advertising have been dimmed. Hotels and tourist sites are exempt. Non-essential workers are required to work from home one day per week to reduce commuting. The government has also raised petrol prices and public transport fares, delayed energy-intensive state projects, and reduced fuel allowances for government vehicles by nearly a third.
Southeast Asia: Rationing and workweek adjustments
The Philippines has declared a national emergency, offering subsidies to transport drivers and implementing a four-day workweek for civil servants. With 98% of its oil imported from the Gulf, the country has seen diesel and petrol prices more than double. President Ferdinand Marcos stated that "nothing is off the table" as the government explores additional measures, including plans to stockpile an extra million barrels of oil.
Sri Lanka, still recovering from a financial crisis, has declared Wednesdays a public holiday for government institutions and introduced fuel rationing. Drivers are limited to 15 litres per week, while motorcyclists may purchase only 5 litres. Thailand has urged citizens to reduce air conditioning use by setting thermostats to 26-27°C and working from home. The government has also prioritized fuel supplies for security institutions, key industries, and essential goods manufacturing.
Fuel restrictions spread across Africa and Asia
In Ethiopia, petrol stations are prioritizing public transport, and fuel supplies to the Tigray region have been suspended amid fears of renewed civil conflict. Myanmar has introduced an odd-even license plate system for private vehicles, exempting electric cars, and implemented a digital fuel rationing system using QR codes to track purchases.
Vietnam has encouraged citizens to use bicycles, carpool, or rely on public transport, while temporarily waiving environmental protection taxes and VAT on petrol and diesel. Bangladesh closed universities early for Ramadan holidays and introduced fuel rationing, alongside planned blackouts to conserve energy. Slovenia has become the first EU country to enforce fuel rationing, capping private motorists at 50 litres per day and businesses at 200 litres.
South Sudan, despite its oil reserves, imports refined fuel and has begun rationing electricity in the capital, Juba. The national distributor, Jedco, announced rotational power cuts, as the country generates 96% of its electricity from oil, according to the International Energy Agency.
