A series of drastic measures have been put forward as countries face spiraling oil coats caused by Russia’s invasion of Ukraine. The International Energy Agency has recommended making people work from home, introducing lower speed limits and making Sundays car-free Sundays as 'emergency measures'.
The agency has come up with a ten-point plan that also includes curbing business flights, making public transport made cheaper or free, and recommending motorists should set their cars’ air conditioning systems 3C warmer this summer. According to The Times, the moves could be needed to battle the “biggest oil supply shock in decades”.
Sanctions and boycotts of Russian oil are likely to remove 2.5 million barrels a day from the markets, creating “a real risk that markets tighten further and oil prices escalate significantly in the coming months” as oil demand typically peaks in July and August, the agency said. But it is believed emergency measures would cut global oil demand by 2.7 million barrels a day within four months.
“Oil markets are in an emergency situation. And it may get worse,” Fatih Birol, the agency’s executive director, said. “The world may well be facing its biggest oil-supply shock in decades, with huge implications for our economies and societies.” The agency said the measures it proposed “would reduce the price pain being felt by consumers around the world, lessen the economic damage, shrink Russia’s hydrocarbon revenues, and help move oil demand towards a more sustainable pathway”.
Here is the agency's 10-point plan...
Reduce speed limits on highways by at least 10 km/h
Work from home up to three days a week where possible
Car-free Sundays in cities
Make public transport cheaper and incentivise walking and cycling
Alternate private car access to roads in large cities (eg every other day)
Increase car-sharing and adopt practices to reduce fuel use
Promote efficient driving for freight trucks and delivery of goods
Using high-speed and night trains instead of planes
Avoid business air travel where alternative options exist
Reinforce the adoption of electric and more efficient vehicles
Earlier today the Chancellor said the public should not be “scared” about rising energy prices. Rishi Sunak, asked on the BBC’s Sunday Morning programme whether he was prepared to step in to offer support amid increasing energy bills, said: “Of course I am, and people can judge me by my actions over the past two years.
“Where we have been able to make a difference, I have tried to do that.” Mr Sunak, told the energy price cap was likely to go up again in October, added: “We don’t know and I don’t want people to be scared.
“What we have is a price cap that will protect people all the way through to the autumn. We’ve acted now to help them with the increase that is coming in, in April – the situation is obviously very volatile in Ukraine.” He said it was “too early to speculate” on what might happen with the price cap in October.
A government spokesman said: “There is absolutely no need to apply this guidance in the UK, and the recommendations are not under consideration. We have no issues with either gas or oil supply. Unlike Europe we are not dependent on Russian energy imports.”
