Global Energy Crisis: Countries Enforce Fuel Rationing, Blackouts Amid Conflict

Governments are enforcing a mix of fuel rationing, work-from-home mandates, public holidays, transport restrictions and even partial industrial shutdowns to stretch limited reserves and prioritise essential services.

In Asia, Sri Lanka has tightened its fuel management regime by expanding its QR code-based National Fuel Pass system, while also declaring a public holiday for schools, universities and non-essential state workers to reduce consumption.

According to Xinhua, the Sri Lankan government announced such moves on March 15.

According to a statement by the Ceylon Petroleum Corporation, under the QR code-based programme, car owners will now receive 25 litres per week, an increase of 10 litres, while three-wheelers will get 20 litres, up by 5 litres. Fuel quotas for lorries and special-purpose vehicles will stay the same.

Bangladesh has also moved aggressively, shutting universities and coaching centres, enforcing fuel rationing, and implementing five-hour rolling blackouts for households while prioritising electricity supply to its crucial garment export sector. The deployment of the army at oil depots underscores the gravity of the situation.

Neighbouring Pakistan has introduced a four-day work week; mandated 50 per cent work-from-home for government employees; and slashed fuel allocations to departments, alongside closing educational institutions, as reported by Dawn, while Bhutan has activated emergency protocols, including fuel rationing for essential services and restrictions to prevent hoarding.

The escalating conflict began on February 28 with the killing of 86-year-old Iran's Supreme Leader, Ayatollah Ali Khamenei, in joint military strikes by the US and Israel, after which Iran, in retaliation, targeted Israel and US assets in several Gulf countries, causing disruption in the waterways and affecting international energy markets and global economic stability.

Due to the conflict in the region, Iran has virtually closed the Strait of Hormuz, a critical global transit for energy trade.

In Southeast Asia, countries such as the Philippines and Vietnam are encouraging remote work and limiting non-essential travel, while Myanmar has imposed odd-even vehicle usage rules amid severe shortages that have forced fuel stations to shut. Similar disruptions have been reported in Cambodia and Laos, where authorities are promoting electric mobility and rotational work shifts to ease pressure on strained supply chains.

The Strait of Hormuz is a critical transit route that normally handles 15 million barrels per day of crude oil and 5 million barrels per day of oil products, representing roughly 25 per cent of global seaborne oil trade.

However, due to the conflict in the region, the waterway has been considered high-risk for transit, choking the global energy supply and forcing countries across the world to take such drastic measures.

In Africa, Egypt has ordered early closure of malls, restaurants and government offices while switching off illuminated billboards to cut power usage, and Kenya has imposed fuel rationing and halted exports as fears grow that existing stocks may run dry within weeks.

South Africa has introduced controlled fuel allocation measures to prevent panic buying and ensure equitable distribution.

Meanwhile, in Europe, Slovenia has seen fuel retailers impose strict caps on sales, limiting supplies for both private and commercial vehicles amid surging demand.

Slovenian energy firm Petrol, last week, announced that it has temporarily restricted fuel purchases and reiterated its call for the government to overhaul the existing state-controlled fuel pricing system, citing increased logistical challenges caused by the conflict.

The wave of restrictions reflects mounting concerns over prolonged disruption to energy flows, particularly through critical transit routes in West Asia.

- ANI