Nations introduce rationing, export caps and four-day work weeks as Australia considers ‘light touch’ approach
As the war in the Middle East throttles global fuel supplies for a third week, Australia is considering “light touch” ways to conserve fuel; encouraging people to work from home or use more public transport could be on the cards. Other countries have taken a different tack. Some nations – including countries that supply Australia with fuel products – have already implemented extreme steps such as four-day work weeks or even temporary school closures to head off crippling petrol, diesel and jet-fuel shortfalls and contain the economic fallout.
Many of the most forceful responses have been in Asia, the region that relies most heavily on oil shipped via the Strait of Hormuz, which Iran has effectively blockaded since February 28. Some Asian governments have begun tapping their strategic fuel reserves, rationing sales or capping petrol pump prices. Some of those states have pre-existing problems with insecure energy supplies, poor traffic or geopolitical issues that have exacerbated their fuel challenges, especially compared to Australia.
For Australia, which relies on imports from Asian refineries to fill 80 per cent of its liquid-fuel needs, perhaps the most chilling interventions are moves by several major economies in the region to scale back how much fuel they are willing to ship overseas.
“These restrictions are concerning – particularly for jet fuel, where our supply chains are very limited,” says Lurion De Mello, a finance lecturer at Macquarie University. “And the longer this drags on for, the more catastrophic the situation could be.”
South Korea
One of Australia’s biggest suppliers of refined fuels, South Korea, this week ordered its public sector to reduce its use of passenger cars and launched a national fuel-conservation campaign this week urging consumers to adopt an array of energy-saving practices. These include taking shorter showers, riding bicycles instead of cars and charging electric vehicles and mobile phone batteries during the day instead of overnight. It has also introduced a mandatory export cap on refined fuel exports, which allows the country’s oil refiners to match – but not exceed – the volumes of petrol, diesel and kerosine as they shipped in 2025. The country relies on Middle Eastern suppliers for about 70 per cent of the crude oil it needs to process into fuels at its oil refineries.
The Philippines
The Philippines, which imports nearly all of its oil products from the Middle East, has declared a year-long “national energy emergency”. The declaration authorities the government to make advance payments to procure fuels and take action against hoarding and profiteering. The Philippines has also introduced shorter work weeks for some public-sector employees, and is seeking permission to obtain oil from sanctioned countries to shore up its fuel supply.
China
China has imposed a ban on all refined fuel exports earlier this month, including shipments of petrol, diesel and jet fuel. Beijing’s order prohibits refiners from loading cargoes that had not cleared customs before March 11. This move is particularly alarming for supplies of aviation fuel as China is a dominant global supplier. Chinese shipments ordinarily account for more than 40 per cent of Australia’s imported jet fuel. China’s top economic planning agency, the National Development and Reform Commission, has also scaled back a planned fuel price increase to “reduce the burden on drivers” across the country.
Bangladesh
Bangladesh is rationing fuel sales to keep its supplies stable after facing a rush of panic-buying and stockpiling. Under the limits, motorcycles can buy up to 2 litres of octane or petrol a day, private cars can buy 10 litres. Long-distance trucks, buses and freight carriers can buy up to 220 litres of diesel. Earlier this month, Bangladesh brought forward a planned public holiday closure of its universities as an emergency measure to preserve power and fuel. International news services have reported that the miliary has been deployed to guard fuel depots in the country amid long queues and unrest.
India
India, the world’s fourth-largest refiner, has been hit hard by the drop-off in crude oil deliveries from the Middle East since the outbreak of the war. It has not signalled that it would ban exports, but says it will green-light extra fuel requests from neighbouring countries only if it has surplus supplies. Indian refiners account for more than 6 per cent of Australia’s refined fuel imports.
Sri Lanka
In Sri Lanka, the government has embarked on a suite of actions to tackle the fuel crisis and manage shortages, including introducing a four-day workweek and requiring schools and public institutions to make every Wednesday a public holiday. It is also rationing fuel, limiting private vehicles to 15 litres of petrol or diesel per week. To reduce long queues at service stations, it is introducing a system whereby cars with licence plates ending in even numbers can only fill up on even-numbered days off the month, and those ending in odd-numbers only on odd-numbered days.
Europe
In Europe, Italy’s government has approved a temporary cut to the fuel excise to help its motorists deal with higher petrol and diesel prices. Prime Minister Giorgia Meloni said her government had agreed to a €0.25 (40c) per litre cut in the fuel tax. Spain has also launched a multibillion-dollar package to reduce its fuel taxes by up to €0.30 (50c) a litre. Germany has banned service stations from raising prices more than once a day, at midday. Slovenia on Monday became the first European Union country to begin rationing fuel as it seeks to head off shortages at the bowser, which has partly been driven by motorists from neighbouring countries drive to its petrol stations to take advantage of regulated prices. Private motorists in Slovenia will be restricted to a maximum purchase of 50 litres of fuel per day.
United States
In America, the Trump administration has temporarily suspended environmental restrictions on high-ethanol petrol, which are designed to reduce smog. Sales of petrol known as E15, due to the fact its ethanol content is up to 15 per cent, are typically restricted during summer because it evaporates easily in the heat, causing air pollution. It has also authorised the release of oil from its strategic reserve, and is easing restrictions on sanctioned Venezuelan and Russian oil in a bid to lower prices. However, President Donald Trump insists “short-term oil prices” are a very “small price to pay” for the US, world safety and peace, and has claimed prices would “drop rapidly when the destruction of the Iran nuclear threat is over”.
Australia
Australia has tapped into its strategic stockpiles to release more than 700 million litres of supply, enough to satisfy an additional five days’ worth of petrol and six days’ of diesel. The Albanese government has also temporarily relaxed fuel standards to allow more petrol and diesel to be sold locally, and secured additional fuel shipments to arrive in Australia soon. The government is now in internal discussions over whether to encourage remote working, greater public transport usage and car-pooling.
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Nick Toscano is a business reporter for The Age and Sydney Morning Herald.Connect via X or email.
