Middle East Conflict Disrupts Global Oil Supply, Prompting Fuel Rationing Measures

The ongoing conflict in the Middle East has severely disrupted global shipping routes, leading to a surge in oil prices. The Strait of Hormuz, a critical passage for about 20% of the world's oil supply, has been effectively closed since the onset of the US-Israel war on Iran. This closure has caused oil prices to exceed $100 per barrel for the first time since Russia's invasion of Ukraine four years ago.

Kerosene prices have been particularly affected, rising faster than other fuels such as petrol and gas. In response, the Indian government has invoked emergency powers, directing refiners to maximize production of liquefied petroleum gas (LPG) to prevent shortages. Sales to industry have been reduced to ensure adequate supply for the 333 million homes with LPG connections.

Sri Lanka has introduced fuel rationing to extend its supplies. Under the new system, motorcycles are allocated 5 liters, cars 15 liters, and buses 60 liters of fuel per week.

In Pakistan, Prime Minister Shehbaz Sharif announced measures to cut fuel use and government spending in response to surging oil prices. These measures include closing schools for two weeks and encouraging office workers to work more from home.

The global community continues to monitor the situation closely, as the conflict's impact on energy markets and economies worldwide remains significant.