Cite report
IEA (2026), Sheltering From Oil Shocks, IEA, Paris https://www.iea.org/reports/sheltering-from-oil-shocks, Licence: CC BY 4.0
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Road transport fuels
Road transport accounts for around 45% of global oil demand, ranging from a third in Korea up to two-thirds in some countries in Europe and Latin America. In advanced economies, passenger cars dominate road transport demand, accounting for around 60% of road energy use. Trucks make up most of the remainder. In emerging economies, there is also a significant role for two/three-wheelers (scooters, motorcycles and tricycles), which account for around 5% of road transport demand and are more numerous than cars in many countries. The share of energy use in medium and heavy freight trucks is also higher than in advanced economies.
There are several key actions that can immediately reduce road transport fuel demand and, as a result, lower oil use.
1. Work from home where possible
Description: Working from home can reduce oil consumption from private vehicles used to commute. While not all jobs are suitable for working from home, it can be an effective measure when the job allows for it. In advanced economies, about one-third of jobs are suitable for remote work, while in emerging markets and developing economies, this figure is closer to one-fifth. Working from home affects oil consumption differently across regions, depending on commute distance, car occupancy and average fuel consumption of the car. In most countries the impact is felt mainly on gasoline demand; however, in countries and regions such as Korea, India, and Europe, diesel use is also affected. The effects of working from home also vary by season, largely because of how air conditioning is used in cars. As a result, remote work helps conserve more oil during the warmer months.
Impact: Commuting accounts for between 5% and 30% of car activity across regions. As not all jobs are suitable for working from home, at the national level, three additional remote working days, for those whose jobs allow for it, could reduce oil consumption from cars by 2%-6%. If an average individual driver shifts from no teleworking to three remote days in a five-day workweek, their personal car oil consumption could be reduced by up to 20%.
How can governments enable this: Governments can encourage businesses to allow their employees to work from home, and can mandate public officials to work from home, where possible, and close public buildings on certain days.
Policy examples: In response to the 2026 crisis in the Middle East, several countries have announced measures to encourage working from home. For example, the Philippines and Pakistan have mandated 4-day workweeks for government workers, while Sri Lanka has closed public offices on Wednesdays, and Lao PDR, Thailand and Viet Nam are all actively promoting remote work. Many European governments also encouraged working from home in response to the energy crisis in 2022-23, including through the joint IEA-EU Playing my Part Campaign. For example, France incentivised public officials working from home in 2022, and encouraged private companies to follow this example.
2. Reduce speed limits on highways by at least 10 km/h
Description: Lowering the speed limit on highways can reduce oil consumption for passenger cars, light commercial vehicles and trucks. Countries have different speed limits in place across the world, but these typically range from 100 km/h to 130 km/h.
Impact: Reducing its speed on the highway by 10 km/h can cut an individual driver’s oil use by 5% to 10%. Such speed limit reductions may decrease national oil use for private cars by 1% to 6%, depending on local infrastructure and driving habits. Heavy freight trucks save less fuel from a 10 km/h speed reduction due to their already lower speeds, but because they use highways much more on average, each heavy freight truck can still cut oil use by around 5% when applying such a measure. This measure affecting heavy trucks primarily reduces diesel demand, as heavy trucks run mainly on diesel. It also lowers gasoline demand, since it affects passenger cars and light commercial vehicles, where around 85% of oil use is gasoline. In some markets, such as Korea, India, and Europe, the reduction in energy use from cars will have a noticeable impact on diesel demand due to the significant share of diesel-powered cars in the overall fleet.
How governments can enable this: Governments can mandate a reduction in speed limits by law or launch an information campaign asking drivers to voluntarily lower their speed. They can also use electronic signs to indicate the requested speed limit. Ahead of a nation-wide policy, governments can start by asking all public workers to voluntarily lower their maximum speed on highways and motorways by 10 km/h.
Policy examples: This is a tried-and-tested policy response in many countries. Already during the first oil crisis in 1973, the French government decreased speed limits to 90 km/h on overland roads and 120 km/h on motorways. France encouraged reducing driving speed again in response to the 2022 energy crisis. Since the start of the 2026 crisis in the Middle East, Pakistan has reduced speed limits on motorways and national highways. On motorways, the limit for light-duty vehicles has been reduced from 120 km/h to 100 km/h, and for heavy-duty vehicles from 110 km/h to 90 km/h. On national highways, the limit for light-duty vehicles was reduced from 100km/h to 80 km/h, and for heavy-duty vehicles from 80 km/h to 65 km/h. The government also launched an awareness campaign to ensure effective implementation and to inform commuters.
3. Encourage public transport
Description: Shifting travel away from private cars to public transport, such as buses and trains, can reduce oil demand. Most public transport vehicles rely on electricity rather than liquid fuels, but even where they consume oil they are much more efficient modes of transport. Walking and cycling can further reduce car trips, where practical.
Impact: In some countries, short trips of less than 30 km within large cities can account for up to 50% of oil consumption by private vehicles. Depending on infrastructure, encouraging public transportation could reduce national oil use for cars by 1% to 3%. This measure reduces gasoline demand in most countries, while in regions where diesel-powered cars make up a noticeable share of the car fleet - such as Korea, India, and Europe - it also has a noticeable impact on diesel consumption.
How governments can enable this: In places where public transport infrastructure already exists, governments can reduce fares or make transport free for residents to incentivise a shift away from private cars. Care should be taken to ensure such supports are targeted towards more vulnerable populations. Governments can also encourage public servants to prioritise public transport for commuting.
Policy examples: In response to the crisis in the Middle East, several countries are encouraging users to prioritise public transport. In Lao PDR, the Ministry of Public Works and Transport is studying ways to connect the Bus Rapid Transit system with train stations and airports to improve access. Similarly, the government of Bangladesh has asked citizens to use public transport instead of private vehicles to conserve fuel. Several governments also implemented public transport measures in response to higher energy prices in 2022, such as reduced or zero-fare public transport schemes. Luxembourg has had free public transport since 2020 and Malta became fare free for all residents in 2022. Other countries implemented short-term measures, such as Germany’s 9-euro ticket, which gave access to use all local transport and regional trains for a month. New Zealand’s government halved public transport fares in March 2022 as a response to rising oil prices.
4. Alternate private car access to roads in large cities on different days
Description: Private vehicles are allowed into designated zones in large cities on specific days only based on their number plate. Vehicles with odd-numbered plates have access on different weekdays than those with even-numbered plates. This measure reduces traffic congestion, engine idling and fuel-intensive stop-and-go driving. It also reduces local air pollution and improves attractiveness of the city centre for the use of bicycles or walking.
Impact: Preventing half the car stock from circulating in cities for two days a week would save 1% to 5% of national car oil use. Like the previous measures, the impact is stronger on gasoline, except in countries where diesel-powered cars make up a significant share of the car fleet.
How governments can enable this: Governments can designate specific zones with alternating traffic restrictions. Cars can be assigned to certain weekdays or dates based on their number plates. For example, even-numbered plates on some weekdays and odd-numbered plates on the other weekdays. Exceptions can be made for cars with many occupants, as well as taxis. Governments can refrain from granting exemptions to non-essential government fleet vehicles.
Policy examples: In response to the 2026 crisis in the Middle East, the Korean government is considering putting in place a 5-day or 10-day vehicle rotation system, meaning each vehicle would be prohibited from use for one day every five or ten days. Looking further back, the measure has been used for a long time in many cities globally. During the first oil shock in 1973, the Italian government first introduced car free Sundays and then an odd/even number plate policy on Sundays. Since then, some large cities, such as Beijing and São Paulo, implemented this measure permanently, while temporary schemes during pollution or rush hour peaks were implemented in New Delhi, Jakarta and Manila. In recent years, many countries have had initiatives such as car-free Sundays in cities.
5. Increase car sharing and adopt efficient driving practices
Description: Individual choices on driving styles, car sharing, and temperature settings can influence fuel consumption. People can choose to share a ride to reduce oil demand and save on other costs such as tolls. Carpooling contributes to oil demand reduction by increasing car occupancy and relieving road congestion, thus reducing travel times. Efficient driving practices such as smoother acceleration, tyre pressure monitoring and higher vehicle air conditioning set points can increase fuel savings further.
Impact: Carpooling can reduce oil demand because it allows the same amount of energy to meet a greater share of mobility needs. Reducing car usage in rural areas, for instance, can potentially lower national car oil consumption by up to 4%. Adopting eco-driving measures can double the savings in most regions, while higher air-conditioning set-points mostly affects hot climate countries. Combining all these measures together: carpooling for rural trips, air conditioning measures, and eco-driving could lead to a reduction of car oil demand by around 5% to 8%. The impact is greater on gasoline, except in countries where diesel-powered cars constitute a significant portion of the fleet.
How governments can enable this: Governments can designate dedicated traffic lanes, dedicated parking spots, reduced road tolls for higher occupancy vehicles, and support the use of ride-sharing apps. Information campaigns on eco-driving techniques, and on the impact of air-conditions on fuel consumption can prompt more drivers to change their driving behaviours.
Policy examples: Several countries and cities already promote car sharing and eco-driving to reduce fuel consumption. Carpool lanes have been implemented in various urban areas to incentivise shared travel, such as Madrid, Houston, Shenzhen and Los Angeles, among others, where exclusive lanes can be used by cars with more than two occupants. In response to the energy crisis in 2022, France encouraged citizens to adopt more economical driving habits, and accelerated the deployment of eco-driving trainings. The Japanese government has issued recommendations for eco-driving, including gentle acceleration, reduction of idling and reduced use of car air conditioning. The measures are actively promoted in cooperation programmes with ASEAN countries.
6. Efficient driving for road commercial vehicles and delivery of goods
Description: Road commercial vehicles are major consumers of diesel, an oil product strongly affected by the current crisis. Their fuel efficiency and mode of operation can significantly impact oil use. Measures range from the efficient operation of vehicles, including regular checks of tyre pressure, reduced idling and reduction of braking and accelerating, to operational improvements such as optimisation of vehicle loads and a reduction of empty travel journeys. Digital technologies can facilitate reaching these goals.
Impact: If the information campaigns are successful and there is widespread adoption by drivers, eco-driving practices could reduce national oil use for road freight by up to 4%. This measure in combination with an optimisation of delivery options (i.e. increasing load factors) could reduce their national oil demand by 3% to 5%, mainly reducing diesel demand.
How governments can enable this: Governments can introduce eco-driving techniques as part of the examinations to receive a driving licence. In the short term, they can offer information material to logistics companies or recommend driver scorecards that can set up a competition for most economic driving style within a company. Governments often operate their own vehicle fleets and can introduce training for eco-driving techniques and put special emphasis on vehicle maintenance, such as tyre pressure.
Policy examples: The UN Economic Commission for Europe Partnership on Eco-Driving has published guidelines for local eco-driving initiatives. Private and public initiatives such as the AddSecure Eco-Driving Challenge have demonstrated fuel savings potential of eco-driving techniques. Peru has made regulatory changes to include eco-driving in the training curriculum as a requirement for a driver’s license. Under the Giro Limpio programme, Chile has implemented free efficient driving trainings and certifications for professional drivers.
7. Divert LPG use from transport
Description: Given the current shortage of LPG for cooking in certain regions, governments could support a reduction in LPG used in transport. Around 2% of the global car fleet runs on LPG, with that proportion in some countries, such as Italy and Korea, reaching up to 10%. These vehicles are either retrofitted (converted from gasoline vehicles using LPG kits) or factory-built bi-fuel models capable of running on both gasoline and LPG, and Mono-fuel LPG vehicles are limited in number. Therefore, LPG consumption can be reduced with very limited operational consequences for drivers.
Impact: A temporary shift away from LPG use in road vehicles could divert almost all LPG road consumption in most countries, or 20% to 30% in a few markets where mono-fuel LPG vehicles are present. This could lead to a rise of global gasoline demand of around 2%, with some countries – particularly in Europe, such as in the Balkans, experiencing a noticeable increase in national road gasoline consumption.
How governments can enable this: Most LPG usage is driven by its favourable price relative to gasoline. By adjusting taxation, governments can temporarily encourage drivers to choose the gasoline option instead of LPG, particularly in converted vehicles or bi-fuel ones.
Policy examples: Currently, most countries maintain low excise taxes on LPG compared to gasoline due to lower CO₂ and local air pollutant emissions, and in some cases even subsidise LPG conversions. Historically, there are few, if any, examples of policies that have led to a reverse trend favouring gasoline over LPG. However, under the specific circumstances today, such measures could be considered to influence fuel choice.