Drive less and work from home as Iran energy shock bites, EU official urges

The European Union’s energy commissioner is asking people in the bloc to drive less, work from home and implement other measures to lower the demand for oil and gas as the Iran war strains energy supplies.

The EU is asking its member states to implement the International Energy Agency’s 10-point plan to reduce global oil demand, said Dan Jørgensen, the EU’s energy commissioner, during a press conference on Tuesday.

“Since the beginning of the conflict in the Middle East, prices in the EU have risen by around 70 per cent for gas and by 60 per cent for oil,” he said.

“We should be under no illusion that the consequences of this crisis for the energy markets will be short-lived. Because they won’t,” he added.

Jørgensen listed some of the 10 measures that the IEA, of which Canada is also a member, is asking members to implement.

For one, the IEA recommendations ask people to “work from home where possible.”

Member states are also being asked to “reduce highway speed limits by at least 10 km/h.”

This measure harkens back to the 1973 oil price shock, when the U.S. imposed a national speed limit of 89 km/h (55 mph) on all highways in 1974, a limit that was not lifted until 1995.

Driving at higher speeds burns more gasoline, while driving slower uses less.

IEA member states are being asked to encourage public transport, alternate private car access to roads in large cities on different days, increase car sharing and adopt efficient driving practices.

The IEA also urges switching to “modern cooking solutions” such as electric cooking to reduce reliance on cooking gas.

The recommendations can’t be “one-size-fits all,” Jørgensen said, adding that the EU doesn’t “expect all member states to implement all 10 demand reduction tools.”

“But it is a very good toolbox and we very much recommend that every country look at which possibilities they have,” he added.

The EU needs to “avoid fragmented national responses,” he said, pushing for a co-ordinated approach.

The energy-saving measures would not be short-term, he said, adding that the energy infrastructure near the Persian Gulf was “ruined” by the Iran war.

“Even if that peace is here tomorrow, still we will not go back to normal in the foreseeable future,” he said.

In Canada, the BC General Employees Union is asking the province to “allow provincially regulated employees, where possible, to work from home full time” as the Iran crisis rages on.

“The increasing price of gas places an undue burden on workers across the province” said BCGEU president Paul Finch.

“The provincial government has an opportunity to help alleviate that burden by allowing workers the flexibility to work from home. In addition to lessening the pain workers are feeling at the pump, this move would help reduce emissions and congestion,” he added.

Earlier this month, several Asian nations that are heavily reliant on imported energy put in place energy-saving measures as their oil and gas supply was hit, raising costs.

In Thailand, an order for civil servants to work from home for the foreseeable future came with another request, as well — the Thai prime minister also ordered measures including suspending overseas trips and using stairs instead of elevators.

Pakistan has mandated a four-day work week, work-from-home measures for a large swathe of its public service and ordered that all universities hold classes online, citing “resource conservation.”

Vietnam’s government has asked private firms to consider letting their employees work from home, while India has asked liquefied petroleum gas consumers to avoid panic buying.

Sri Lanka introduced fuel rationing on Sunday to extend the life of its supplies. Under the new system, motorcycles will be allocated five litres, cars 15 litres and buses 60 litres of fuel per week.

The island nation has secured fuel shipments until the end of April, authorities at the state-run Ceylon Petroleum Corporation told reporters in Colombo, adding that police will be deployed to reduce lines and minimize hoarding.

– With files from Reuters